diff --git a/modules/apps/transfer/types/trace.go b/modules/apps/transfer/types/trace.go
index 93aa7ee14bf..ee7b3c2ad50 100644
--- a/modules/apps/transfer/types/trace.go
+++ b/modules/apps/transfer/types/trace.go
@@ -199,11 +199,11 @@ func ValidatePrefixedDenom(denom string) error {
 		return nil
 	}
 
-	if strings.TrimSpace(denomSplit[len(denomSplit)-1]) == "" {
+	path, baseDenom := extractPathAndBaseFromFullDenom(denomSplit)
+	if strings.TrimSpace(baseDenom) == "" {
 		return errorsmod.Wrap(ErrInvalidDenomForTransfer, "base denomination cannot be blank")
 	}
 
-	path, _ := extractPathAndBaseFromFullDenom(denomSplit)
 	if path == "" {
 		// NOTE: base denom contains slashes, so no base denomination validation
 		return nil
diff --git a/modules/apps/transfer/types/trace_test.go b/modules/apps/transfer/types/trace_test.go
index 49623ed1dec..f7634a7a3b0 100644
--- a/modules/apps/transfer/types/trace_test.go
+++ b/modules/apps/transfer/types/trace_test.go
@@ -132,15 +132,16 @@ func TestValidatePrefixedDenom(t *testing.T) {
 		expError bool
 	}{
 		{"prefixed denom", "transfer/channel-1/uatom", false},
+		{"prefixed denom with base denom with leading slash", "transfer/channel-1/uatom/", false},
 		{"prefixed denom with '/'", "transfer/channel-1/gamm/pool/1", false},
 		{"empty prefix", "/uatom", false},
 		{"empty identifiers", "//uatom", false},
 		{"base denom", "uatom", false},
 		{"base denom with single '/'", "erc20/0x85bcBCd7e79Ec36f4fBBDc54F90C643d921151AA", false},
 		{"base denom with multiple '/'s", "gamm/pool/1", false},
+		{"single trace identifier", "transfer/", false},
 		{"invalid port ID", "(transfer)/channel-1/uatom", true},
 		{"empty denom", "", true},
-		{"single trace identifier", "transfer/", true},
 	}
 
 	for _, tc := range testCases {