The Berachain coin (BERA) has seen a sharp decline in its value over the past few weeks, dropping from a peak of $9.16 in March to a low of $2.97 in May 2025, representing a loss of approximately 67% of its value.
Main reasons for the decline of the Berachain coin
1. Decreased liquidity and investor exit
The Berachain network experienced a significant liquidity outflow, with over $40 million worth of BERA sold in one week, leading to a decrease in market capitalization from $776.7 million to $401.4 million.
2. Decline in network usage
The number of daily active addresses on the Berachain network has decreased from 1.2 million to just 72,500, indicating a significant decline in interaction with the network and a loss of confidence from investors and developers.
3. Supply pressures and increased distribution
An additional 10 million tokens are expected to be launched in May, increasing market supply and putting downward pressure on prices.
4. Bearish chart pattern
Technical analyses suggest that the BERA coin is following a 'bear flag' pattern, indicating a potential continuation of the downward trend in the near future.
Is there hope for recovery?
Despite the significant decline, some analysts see signs of a potential reversal in the trend, such as the emergence of a bullish divergence in the technical indicators. However, recovery depends on factors such as restoring investor confidence and increasing network activity.
Conclusion
These developments reflect the challenges faced by emerging cryptocurrencies like Berachain, where changes in liquidity, network usage, and supply pressures can lead to sharp price fluctuations. It is important for investors to closely monitor these factors and make informed decisions based on technical and fundamental analyses.