Renowned for its pioneering blockchain initiatives, Animoca Brands has taken a decisive step to expand its influence by investing in AERO. Although this move may not immediately affect the price of Sand Coin (SAND), experts suggest it will likely bolster its position in the medium to long run.
What Does This Mean for Sand Coin?
This investment is particularly noteworthy as there have been few significant updates from Sand Coin in recent times. Currently, the most actively utilized Ethereum layer 2 solution is the Base network, developed by Coinbase. Despite the absence of its own token, numerous altcoins operating on Base have seen considerable appreciation during market upswings, hinting at promising growth prospects. By leveraging an increasing user base and growing total value locked (TVL), Base is rapidly becoming a lucrative investment prospect.
Why Choose to Invest in Aero?
Aero, a prominent liquidity hub on the Base network, boasts nearly half of the network’s TVL. Animoca Brands’ investment in Aero marks a strategic alignment of interests, where participants benefit through both fees and incentives distributed to veAERO holders.
The structure ensures that liquidity providers (LPs) gain AERO emissions which are influenced by the votes their pools secure. Meanwhile, those holding veAERO can lock AERO to guide emission allocations. The alignment of interests is crucial, with incentives structured to reward stakeholder involvement and commitment.
“The reason for this action is to align the interests of participants in the AerodromeFi liquidity hub: Fees and incentives are distributed to veAERO holders. LPs receive AERO emissions based on the votes their pools receive, and veAERO holders lock AERO to direct emissions.”
AERO’s tokenomics and the adeptness of its team cement its prominence within the Base’s infrastructure. As Animoca Brands steps into this space, the potential impacts on the broader blockchain ecosystem are evident:
– AERO’s robust token model ensures sustainable growth.
– Base network’s rising TVL signals increasing trust and participation.
– Investment strategies are aligning to maximize stakeholder profitability.
Animoca Brands’ tactical investment in AERO is poised to influence the broader blockchain terrain. With developments like these, Sand Coin’s future appears promising, riding on advancements in blockchain technology and strategic expansions.
