The Berachain blockchain, which previously attracted attention in the DeFi space due to its unique 'proof of liquidity' concept, is facing a serious crisis. In two months, the total value locked (TVL) in the network has fallen from $3.5 billion to $646 million, representing a loss of approximately $2 billion of investor funds. The main reasons cited are the high fully diluted valuation (FDV) and the low free float token supply model, which has been criticized by experts. This has allowed insiders and venture investors to accumulate significant holdings of the Bera token, resulting in a mass exodus of retail users.
The decline in blockchain activity has reached nearly 90%, threatening its status. Analysts note that the lack of new protocols and decentralized applications generating yield has undermined the liquidity system. Investors are moving to more attractive networks like Ethereum and Solana. Berachain developers have not commented on the situation yet, but experts believe that new incentives and projects are needed to restore confidence.
This case highlights the vulnerability of new blockchains without a sustainable ecosystem. Stay tuned for updates!
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