The Ultimate Cryptocurrency to Buy Today

Data and history prove that the safest and most productive crypto investment revolves around Bitcoin (CRYPTO:BTC), along with some major altcoins like Ethereum (CRYPTO:ETH) and Solana (CRYPTO:SOL).

This strategy minimizes risk in the already risky cryptocurrency market, but investors looking for astronomical returns may need to look elsewhere as Bitcoin, Ethereum, and Solana are likely past their most explosive days.

Unfortunately, expanding beyond these household names often comes with an exceptional level of risk, as it often involves unproven assets with no clear utility or fundamentals, as is common with meme coins. Fortunately, I may have found the ideal candidate that can be built for the long term and is just early in its journey: Aerodrome (CRYPTO:AERO).

Image source: Getty Images.

What is an Airport?

Aerodrome is a decentralized exchange (DEX) that launched in 2023. It has come to be known as MetaDex because it combines some of the best features found in the most popular DEXs ever created, such as Curve and Uniswap. Aerodrome’s unique approach makes it stand out from the crowd.

The biggest difference between Aerodrome and existing DEXs is voting. Aerodrome has an incentive model that rewards participation among users. By locking up the AERO token, users receive AERO. They can then use this new token to vote on specific liquidity pools.

The more voting tokens users pledge to a pool, the more valuable the pool becomes and, in turn, the more AERO users receive to lock up their tokens. This creates a self-reinforcing cycle or a flywheel effect that drives greater participation and liquidity.

With its attractive voting and incentive mechanisms, Aerodrome attracts not only users but also other cryptocurrencies looking to create liquidity, a vital component that cryptos need for longevity. Then, as more users and protocols engage with the platform, the value of the Aerodrome ecosystem grows. This growth, in turn, increases the value of the AERO token.

Cherries on top

Unlike investing in random meme coins or other obscure cryptos in the hope of astronomical gains, Aerodrome offers solid fundamentals and clear benefits in the market. And there are two more aspects that could support its long-term prospects.

The first bonus to Aerodrome’s growing potential is that it’s built on Base, one of the most popular emerging blockchains on the market. Launched in August 2023 by crypto platform company Coinbase (NASDAQ: COIN), Base is known for its fast speeds, low fees, and compatibility with Ethereum.

The story continues

In less than a year, Base has become the sixth most valuable decentralized finance (DeFi) blockchain, with Aerodrome accounting for nearly half of that value at last count and that share only growing.

Then there’s the second bonus. In early 2024, Coinbase Ventures said it had invested in Aerodrome, which was seen by many as a sign of confidence in the project due to Coinbase’s expertise.

And it’s only getting better. Coinbase has continued to invest in the project throughout this year, investing $2.7 million since the beginning of the year, according to data from crypto research firm Nansen.

While perhaps a stretch, this is comparable to a prominent figure like Warren Buffett investing in a relatively unknown company. Coinbase’s continued investment shows that a major player in the crypto industry believes in Aerodrome’s long-term potential, and should be viewed as a bullish development.

Final words of advice

It should be emphasized again that Aerodrome has a small market cap and is still in its infancy, meaning it carries a significant amount of risk. But if it continues on its current trajectory, that could mean great things, especially as this bull market progresses. If it does, a valuation similar to what SushiSwap (on the low end) or Uniswap (on the high end) reached last cycle would represent a five-times to 43-times gain at today’s prices.

With Coinbase’s backing and one of the most innovative designs on the market, Aerodrome may have what it takes to reach these valuations. However, it’s important to proceed with caution with this asset. Aerodrome should by no means make up the majority of your portfolio, but under the right circumstances, it could be worth a small presence.

Should you invest $1,000 in Airport Financing right now?

Before buying Aerodrome Finance stock, consider the following:

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RJ Fulton has positions in Aerodrome Finance, Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, Solana, and Uniswap Protocol Token. The Motley Fool has a disclosure policy.

The Best Cryptocurrency to Buy Today was originally published by The Motley Fool