The Berachain (BERA) cryptocurrency has emerged as the best-performing Layer 1 coin, outdoing the likes of XRP, Bitcoin (BTC), and Ethereum (ETH) with a 28% weekly gain.
Over the past 24 hours, the coin has seen its price surge by 16.55% to trade at $7.58, showing that the bullish trend is gaining momentum by the day.
The 24-hour trading volume has also surged by over 22% to $430.94 million, reflecting an influx of investors into the altcoin.
What is the catalyst behind Berachain’s price rise?
At the heart of Berachain’s meteoric rise lies its innovative design as an EVM-identical Layer 1 blockchain.
Unlike traditional proof-of-stake networks such as Ethereum and Solana, Berachain introduces a novel consensus mechanism known as Proof of Liquidity (PoL).
This system intertwines network security with liquidity provision, creating a harmonious alignment of incentives for validators, applications, and users.
Built using BeaconKit, Berachain ensures full compatibility with Ethereum’s execution clients, making it a versatile platform for applications ranging from automated market makers to real-world asset tokenization and Layer 2 solutions.
The blockchain’s safeguards against centralization, including stake caps and concave emission scaling, further enhance its appeal as a decentralized and resilient network.
The dual-token model adds another layer of intrigue where BERA serves as the gas and staking token, facilitating transactions and network participation, while BGT, a non-transferable token, governs the ecosystem and distributes rewards.
This dual-token model not only fosters a vibrant economy but also attracts participants eager to engage with a system that rewards liquidity provision—a key driver behind the recent price surge.
Also, at the beginning of February, cryptocurrency exchange Bitrue announced its support for Berachain, listing BERA on February 6 to coincide with the Token Generation Event.
With 15.8% of the 500 million total supply airdropped to eligible users, this move broadened the token’s reach and liquidity.
Bitrue’s commitment extends beyond the listing, as the exchange has pledged to support developers through marketing initiatives like AMAs and promotional events while offering users a 10% APR on BERA deposits via its Power Piggy product.
Such backing from a prominent platform has undoubtedly bolstered investor enthusiasm.
In addition, more recently, on February 17, Moby — a leading options protocol with a $3.5 billion trading volume on Arbitrum — expanded to the Berachain Mainnet.
Recognized through Berachain’s Request for Application program, Moby’s integration enhances liquidity within the PoL framework, offering traders deeper liquidity and tight spreads, while liquidity providers enjoy high passive income with real-time risk management.
The introduction of Moby’s Structured Product Vault, which optimizes yields by integrating PoL rewards with algorithmic options trading, further amplifies Berachain’s appeal.
There have also been other partnerships with industry players like Kodiak, Infrared, PumpBTC, and GMX, which underscore the Berachain’s growing traction, driving adoption and, in turn, BERA’s price.
Chaikin Money Flow (CMF) shows strong buying pressure
Berachain is experiencing strong buying pressure evidenced by a Chaikin Money Flow (CMF) reading of 0.23 on the hourly chart, signalling sustained investor interest and capital inflows.
Berachain price chart by TradingView
This follows a notable shift in market dynamics, with $1.1 million in spot inflows recorded on Wednesday and $1.6 million inflows recorded today after $2.6 million in outflows the previous day according to Coinglass, suggesting a rapid return of confidence.
Source: Coinglass
Perhaps most telling is the behaviour of investors, who appear to be holding their positions rather than cashing out, a sign of optimism about future gains.
Berachain price prediction: skyrocketing or stabilizing?
As Berachain approaches its all-time high of $15.20, achieved just two weeks ago on February 6, the question looms: can it sustain this ascent?
Well, the immediate path forward hinges on key technical levels.
Breaking through the resistance at $8.49 could ignite a push toward that previous peak, a move that would represent a near doubling of its current price.
However, the coin’s 655.81% climb from its all-time low of $1.00 — also recorded on February 6 — already demonstrates its capacity for explosive growth.
However, with a 49.59% drop from its ATH already in the rearview mirror, profit-taking remains a plausible scenario.
Should investors begin to lock in gains, BERA could retreat to $5.37, or even as low as $3.89 if support levels falter.
Notably, the high volume-to-market-cap ratio of 53.1% suggests significant trading activity, which could amplify volatility in either direction.
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