Berachain Loses $2 Billion, Bera Token Drops 90%

Berachain, a layer 1 blockchain that once stood out in DeFi thanks to its proof-of-liquidity mechanism and memes, has seen its total value locked (TVL) drop from $3.5 billion to $646 million in two months.

Token $BERA has plummeted 90% from its February peak, now at $1.71. Artem Sinyakin (Oak Research) criticizes the high FDV model, low circulating token supply, which puts investors at a disadvantage when selling off ahead of the token unlock in 2026.

Activity on #Berachain has sharply declined, active wallets down 90%, liquidity vault yields falling from 150% to below 10% as the price of Bera collapses. Investors are shifting capital to Ethereum and Solana. Evan (Lair Finance) believes Berachain needs new protocols and attractive decentralized applications to maintain liquidity. Without improvements, Berachain risks becoming a 'ghostchain.' The incident highlights challenges in DeFi, but the potential for blockchain remains significant if a proper strategy is in place.

Risk Warning: The information is for reference only and not investment advice.