Berachain | What’s the final destination?
Whats Berachain?
Berachain, a new Layer 1 blockchain, launched nearly five months ago on February 6th, 2025. While it is EVM-compatible, it introduced an innovative consensus mechanism called Proof of Liquidity (PoL).
PoL is a new replacement to traditional Proof of Stake (PoS). Instead of staking, validators should provide liquidity in DeFi Pools and then stake those LP tokens to earn block rewards. This aligns network security with on-chain economic activity.
In addition, unlike most blockchains that use a single governance token, Berachain uses a “tri-token system”:
$BERA: the native gas token
$BGT: the non-transferable governance token
$HONEY: the incentive/reward token
What happened?
Since the mainnet launch and the $BERA airdrop, the network’s performance, along with the token price, has been dropping.
$BERA is currently down nearly 76% from its all-time high (ATH), and as shown in the chart below, daily transaction volume has significantly declined, falling from an average of over 1.5 million transactions per day to around 500,000.
As we see, there were many fluctuations in the first days of the launch, that’s when there was massive on-chain demand and users had just received their airdrop, which they had been working or better say farming for more than a year during the testnet phase.
Also, the most significant drop in daily transactions happened on May 24th, falling from ~1M to 430,000 -> resulting in a ~60% decrease in just one day!
Around 183 million transactions have been recorded by users, with a success rate of 73.8%, which is quite low compared to its competitors like Sei in this highly competitive market.
We can see that as the daily number of transactions has decreased over time, the success rate has increased. This suggests that the network lacks stability and sustainability under pressure, such as during user surges or other high-demand situations.
With more than 3.2M users, Berachain is one of the most popular Layer 1s in 2025 and generated massive hype around launch time.
Along with the main project, side projects did pretty well both in testnet and early mainnet, like Infrared and Kodiak, and the whole ecosystem was one of the top performers in the DeFi sector. But now, it’s not like how it was in February / Q1 2025.
What is the final destination of Berachain and its users / investors?
I think this is the million-dollar question that nobody truly knows the answer to. Nowadays, users have lost hope in investing in blockchains or in general lets say crypto, after witnessing multiple examples of projects that launched, gained hype, and then died off in a short period.
Berachain seems to be heading toward the same dead end we’ve seen many times in this industry, unless the team can shift momentum and rebuild confidence. The next few months will be crucial.
People need hope or something to believe in. Otherwise, they give up and exit and that’s when everything ends for a project or company. I believe the community is everything in this industry, or at the very least, having some people who truly believe in what you’re building.