Recently, Berachain's performance has certainly been thought-provoking. On January 14th, the BERA token price jumped directly from $0.5 to $0.9, which was quite unexpected given the previous 12-day consecutive decline. The same day the foundation released its year-end summary, discussing ecosystem expansion and technical optimization achievements, but one could sense the pressure from market volatility between the lines.
To be honest, since Berachain's mainnet launch, both token price and TVL haven't shown much promise. Behind this may lie not just market cycle issues, but rather the collision between internal strategies and external pressures.
When the mainnet officially launched in February last year, Berachain introduced the PoL consensus mechanism—Proof of Liquidity, which is quite novel in design. We've seen traditional PoS many times, but this approach uses liquidity proofs to incentivize application and user participation, aiming to build a Layer 1 chain designed specifically for DeFi. The logic sounds clear: higher capital efficiency, better user adoption.
Initial ecosystem expansion didn't disappoint. Hundreds of dApps flocked in, with DEXes, lending protocols, and NFT markets all joining the party. DEXes like BEX became the stars of the ecosystem. The data during that period looked impressive too—TVL surged to $3.3 billion, with active addresses exceeding 140,000. If this momentum had continued, it might have truly created a differentiated public chain.
But now? TVL has dropped to $1.8 million. This decline can't be explained by simple "market adjustment." With only $84 in 24-hour on-chain revenue, what does this indicate? It shows that the actual activity level of the ecosystem and the value generated aren't as optimistic as the data suggests.
This gap from peak to trough typically reflects three issues: first, initial attraction may have stemmed more from hype than actual application demand; second, whether the PoL mechanism can truly incentivize sustainable ecosystem development remains to be seen; third, Berachain's differentiated advantages in competition with other Layer 1 chains still need more time to verify.
However, from another perspective, significant volatility is normal for new public chain development. The key remains whether the foundation can retain users and improve value creation capabilities through genuine product iteration and ecosystem refinement. Otherwise, even if the token price rallies again, it would merely be a flash in the pan.
Recently, Berachain's performance has certainly been thought-provoking. On January 14th, the BERA token price jumped directly from $0.5 to $0.9, which was quite unexpected given the previous 12-day consecutive decline. The same day the foundation released its year-end summary, discussing ecosystem expansion and technical optimization achievements, but one could sense the pressure from market volatility between the lines.
To be honest, since Berachain's mainnet launch, both token price and TVL haven't shown much promise. Behind this may lie not just market cycle issues, but rather the collision between internal strategies and external pressures.
When the mainnet officially launched in February last year, Berachain introduced the PoL consensus mechanism—Proof of Liquidity, which is quite novel in design. We've seen traditional PoS many times, but this approach uses liquidity proofs to incentivize application and user participation, aiming to build a Layer 1 chain designed specifically for DeFi. The logic sounds clear: higher capital efficiency, better user adoption.
Initial ecosystem expansion didn't disappoint. Hundreds of dApps flocked in, with DEXes, lending protocols, and NFT markets all joining the party. DEXes like BEX became the stars of the ecosystem. The data during that period looked impressive too—TVL surged to $3.3 billion, with active addresses exceeding 140,000. If this momentum had continued, it might have truly created a differentiated public chain.
But now? TVL has dropped to $1.8 million. This decline can't be explained by simple "market adjustment." With only $84 in 24-hour on-chain revenue, what does this indicate? It shows that the actual activity level of the ecosystem and the value generated aren't as optimistic as the data suggests.
This gap from peak to trough typically reflects three issues: first, initial attraction may have stemmed more from hype than actual application demand; second, whether the PoL mechanism can truly incentivize sustainable ecosystem development remains to be seen; third, Berachain's differentiated advantages in competition with other Layer 1 chains still need more time to verify.
However, from another perspective, significant volatility is normal for new public chain development. The key remains whether the foundation can retain users and improve value creation capabilities through genuine product iteration and ecosystem refinement. Otherwise, even if the token price rallies again, it would merely be a flash in the pan.