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- 🥛 Rate cuts incoming? 📉
Today’s edition is brought to you by a leading exchange with advanced trading tools - Crypto.com.
GM. This is Milk Road – we tee up the best of crypto, so you can hit non-stop home runs!
Here’s what we got for you today:
✍️ Are the tariffs…working?
✍️ Token Snapshot: Aerodrome
🎙️ The Milk Road Show: Fidelity DA Research Director on Liberation Day & the Long-Term Consequences of Tariffs
🍪 Even Powell got caught off guard by Trump’s latest moves
ARE THE TARIFFS…WORKING? 🤨
In 2016 I tried to ‘get shredded for summer’...
I reactivated my gym membership → put in a good workout → ate some questionable takeout later that night → got a tummy bug → lost 10 pounds in a week.
Puking my guts out wasn’t the ideal route to weight loss…but damn if it didn’t work!
And that’s kinda what seems to be happening with these tariff wars…we’ve seen a big puke over this last week…
As a result, the market is quickly achieving its (my apologies in advance for this)...
Rate loss goals.
(Yeah, no – I’ll see myself out.)
See, the US needs rates to come down so it can refinance its debt at a lower rate (and avoid getting stung with crazy interest repayments) – explained in more depth here.
And so far, so good. 👇
1/ Treasury rates are continuing to fall
Treasury bonds = Government IOUs (the government sells bonds to raise money and pays interest to bond holders). The lower treasury rates are, the less the US has to pay out over time.
2/ The DXY (a measure of the $USD’s strength) is following suit
All global currencies are valued against the US Dollar, so if it weakens, other countries can print cash, without devaluing their own currencies as much.
(I.e. a weaker dollar = permission for other major nations to print money and pump the global economy with fresh cash – some of which finds its way into crypto).
3/ Early rate cuts just became more likely
The expectation of a 25 bps rate cut in May almost doubled in two days, shooting from 14% to 27% on Polymarket since Trump’s blanket tariff announcement on Wednesday.
So where to from here (big picture)?
If we had to guess – one of these two options. 👇
In the meantime – here’s what we’re doing:
Our team members that are already fully allocated are sitting on their hands, and those that have extra capital are adding fundamentally strong tokens on the deep red days.
P.S If you want to do the same – might as well do it on Milk Road Swap and save on fees!
Dollar-cost averaging (DCA) is one of the simplest strategies to build your crypto stack.
You just add a set amount of an asset at regular intervals - no matter the price.
Instead of coming in every month to purchase $BTC, wouldn’t it be better if you could just automate the whole thing?
That’s exactly what you can do with Crypto.com’s trading bots:
Set up a bot to DCA into a single token
Create a custom crypto basket (up to 10 tokens!) and DCA into that
Or choose from pre-made baskets curated by Crypto.com
Bottom line: You can automate your trades and never miss a beat.
TOKEN SNAPSHOT: AERODROME 📸
Want quick-read articles that outline the bear/bull case for specific tokens?
Well that’s what you’re about to get!
Our PRO team will be sporadically writing ‘Snapshots’ for our Token Center listings, each covering:
What the token does
Its bull & bear case
What to watch out for
But shoot – why am I talking about it when I could just show you?
Here’s the ‘What it is’ and ‘What to watch out for’ section of this past Monday’s focus on Aerodrome ($AERO):
What it is:
Aerodrome is the top DEX on Base, Coinbase's Layer 2 network. It’s currently #1 in trading volume, active wallets (above $0.01), and total value locked.
Its native token, $AERO, currently has a market cap of $400M and a fully diluted valuation of $777M (as of March 21, 2025).
There’s no maximum supply, meaning there's no fixed upper limit on how many tokens can be created. Aerodrome’s vote-escrow model uses $veAERO, where users lock $AERO tokens to receive a $veAERO token.
This grants voting power to direct $AERO emissions to specific liquidity pools. $veAERO holders also earn 100% of the trading fees from the pools they vote for.
What to watch for:
Despite leading in trading volume (as shown in the chart below), Aerodrome has fallen behind Uniswap on Base, generating only half the fees ($11.14M vs. $21.48M from mid-Feb to mid-March 2025). Watching the market share vs. Uniswap here is key.
Aerodrome is attracting yield farmers with aggressive liquidity incentives, which boosts liquidity in the short term, but triggers sell pressure and brings risks of a drop in volume if rewards fade or farmers exit.
The bull case for Aerodrome relies on very specific speculative things to fall into place, whereas the bear case is more fundamentally driven. We lean more on the bearish side.
Want to see the Bear and Bull case for $AERO?
This section is usually kept for Milk Road PRO members only, but seeing as this is our first ‘Token Snapshot’ – we’re making this one available to everyone!
Click below to read it. 👇
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Token launchpads are the new money printers. Clanker (pumpdotfun but on base) has now made over $13M in revenue.
Even Jerome Powell got caught off guard by Trump’s latest moves. In his latest presser, Powell said “the tariffs are bigger than expected”. We feel you Jerome, we feel you.
We have a tentative date for the Pectra upgrade! Ethereum devs are looking at May 7th for the network’s next big update.
Trade on dYdX, earn points and convert them into $DYDX tokens. If you trade on smaller markets, get double the points! They’re basically just handing out free money.**
*this is sponsored content.
**this is partner content.
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