In a remarkable feat, Berachain, an EVM-identical Layer 1 blockchain, has showcased extraordinary growth just weeks after its Mainnet launch. Within a mere 20 days, Berachain has eclipsed established blockchains such as SUI, Avalanche, and Arbitrum in Total Value Locked (TVL). Surging to an impressive $3.27 billion, Berachain’s momentum slightly tapered, yet it secured a firm place as one of the top players in decentralized finance (DeFi), ranking sixth before settling back to seventh, closely tailing Base. Its swift ascent not only outshined competitors like SUI, which sits at $1.4 billion, but also AVAX, noted for its $1.23 billion TVL. With many native protocols in the pipeline, Berachain’s potential for further expansion remains substantial.
Currently boasting a $700 million circulating market cap, Berachain solidifies its position within the top 100 cryptocurrencies on CoinMarketCap, with a trading value hovering around $6.70. Recently released data from DeFiLlama indicates that Berachain leads other networks in net bridge inflows over the last week. Market analysts suggest that the rapid growth of Berachain offers an asymmetric investment opportunity, signaling significant upside potential for early adopters. This rise is largely fueled by key protocols, including Infrared Finance, which stands as a leader in liquid staking with a staggering $1.52 billion in TVL. Other notable contributors include the decentralized exchange Kodiak and the yield farming protocol Concrete, which together have added over $2 billion to Berachain’s impressive locked assets.
Community and Controversies Surrounding Airdrops
Despite these accomplishments, Berachain faces challenges in community relations, particularly regarding its recent airdrop of BERA tokens. The Bera Foundation’s distribution encompassed 15.75% of the total token supply, marking one of the industry’s largest airdrops. However, it ignited discontent among community members over perceived inequities. Longstanding testnet users received just 1.65% of the airdrop, whereas holders of Bong Bears NFTs were allocated 6.9%. This discrepancy has led to significant backlash on social platforms, prompting the Berachain Foundation to defend its distribution methods while acknowledging the inherent difficulties in targeting various community segments.
Berachain’s roadmap looks promising, bolstered by a successful $100 million Series B funding round earlier this year, co-led by notable industry players such as Brevan Howard Digital’s Abu Dhabi division and Framework Ventures. The participation of recognized backers like Polychain Capital and Hack VC underscores the confidence investors have in Berachain’s vision. Usage of this funding will expand Berachain’s footprint across regions including Hong Kong, Singapore, Southeast Asia, Latin America, and Africa. As co-founder “Smokey The Bera” aptly noted, this funding validates Berachain’s commitment to building a blockchain informed by real user and developer feedback.
Berachain’s rapid rise within the blockchain ecosystem signals not only a triumph in achieving significant TVL but also emphasizes the importance of community trust and engagement in the longevity of blockchain projects. With a robust strategy and a burgeoning market presence, Berachain is well-positioned to establish itself as a formidable player in the ever-evolving DeFi landscape. The potential for growth remains vast, contingent on the successful launch of its remaining protocols and continued community support.
