Aerodrome (AERO) surges amid tokenized stock volume and new collateral use

Aerodrome Finance (AERO) has experienced a significant price surge, with recent gains reported between 16% and 20%. This rally is supported by growing Total Value Locked (TVL), which rose from approximately $306.72 million to $337.73 million, and a substantial increase in decentralized exchange (DEX) trading volume.

Key drivers for the upward momentum include the protocol's role as a settlement layer for tokenized US equities on the Base network. Cumulative tokenized-stock volume on Base has surpassed $250 million within two weeks, involving on-chain versions of stocks such as Amazon, Microsoft, and Tesla. Additionally, Tenor OTC has announced that it now accepts AERO as collateral for fixed-rate borrowing.

Despite these gains, the protocol faces fundamental challenges. Financial data indicates a notable quarterly loss of approximately $8.15 million, as emissions continue to outpace fees. While trading activity and utility are increasing, the current deficit in earnings remains a point of concern for long-term stability.