In a remarkable turn of events, Berachain, an EVM-compatible Layer 1 blockchain, has made headlines just 20 days post its Mainnet launch. Surpassing established platforms like SUI, Avalanche (AVAX), and Arbitrum, Berachain has achieved a significant Total Value Locked (TVL) of $3.27 billion. Although it experienced a slight reduction following its peak, this achievement catapults Berachain into the sixth position among decentralized finance (DeFi) platforms, though it briefly slipped to seventh due to the rapid advancements of Base. This leap is particularly noteworthy given that Berachain’s TVL easily eclipsed those of its competitors, with SUI and AVAX showing TVLs of $1.4 billion and $1.23 billion, respectively.
One of the most striking features of Berachain’s performance is the promising horizon for its growth. Most native protocols associated with Berachain have yet to launch, hinting at further increases in TVL. Currently achieving a circulating market cap of $700 million, Berachain finds itself firmly situated among the top 100 cryptocurrencies on CoinMarketCap, trading at approximately $6.70. Compounding this success, recent data from DeFiLlama highlighted Berachain’s dominance in net bridge inflows over the past week, reflecting increasing interest and movement of assets onto the platform.
The encouraging trajectory of Berachain has been propelling by its robust ecosystem of protocols. Key players such as Infrared Finance, a liquid staking platform, hold an impressive $1.52 billion in TVL. Other contributors to this rapid growth include the decentralized exchange Kodiak, with $1.1 billion, and yield farming protocol Concrete, which has locked nearly $1.11 billion. These protocols are crucial in enhancing the overall value proposition of Berachain and attracting further investments and users.
However, the rollout comes with its own challenges. Following the milestone launch of the Proof-of-Liquidity network on February 6, the Bera Foundation executed one of the largest airdrops in the crypto space, distributing 15.75% of its total 500 million token supply. This move, while ambitious, faced backlash from segments of the community, particularly regarding the perceived inequity in allocations. A mere 1.65% of airdropped tokens were designated for long-term testnet users, while holders of the Bong Bears NFT received a significantly larger share of 6.9%. This uneven distribution has stirred criticism on social media platforms, prompting the Berachain Foundation to defend its strategy by citing targeting complexities.
At Token 2049, Berachain garnered considerable attention as a leading new project in the cryptocurrency sphere. This momentum was further enhanced by the successful closure of a $100 million Series B funding round in April, co-led by Brevan Howard Digital and Framework Ventures. The round also attracted support from notable investors including Polychain Capital, Hack VC, and Tribe Capital. Co-founder “Smokey The Bera” communicated to Bloomberg his belief that this funding signifies robust validation for Berachain’s user-centric approach in blockchain development. The influx of capital aims to bolster Berachain’s outreach into emerging markets, shaping a promising future for this innovative blockchain platform.
While Berachain’s swift ascent is commendable, the project must address both community feedback and equitable token distribution to maintain its early momentum and foster long-term engagement.
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