On May 13, 2024, Jack Melnick, former head of Polygon Labs DeFi, joined Layer 1 developer Berachain in the same position. Berachain completed a $100 million Series B financing in April this year, led by Brevan Howard Digital and Framework Ventures. As a highly-watched emerging public chain project, every step of Berachain's development affects the market.
Berachain gained momentum at the beginning of this year: funding increased from $42 million to $100 million
Berachain has attracted widespread attention since its birth.
In April 2023, Berachain completed a $42 million financing round led by Polychain Capital, with participation from OKX Ventures, Hack VC, Dao5, Tribe Capital, Shima Capital, Robot Ventures, Goldentree Asset Management, former Dragonfly Capital partner and Celestia founder Mustafa Al-Bassam, Tendermint co-founder Zaki Manian, and 20 other DeFi project founders.
Berachain is a Layer 1 blockchain built on Cosmos SDK and compatible with EVM, protected by the Proof of Liquidity consensus mechanism. Its three-token system (BERA, HONEY, BGT) is not only unique, but also gives the network powerful functionality and flexibility.
In April 2024, Berachain announced that its Series B funding round had grown to $100 million, about 45% higher than previously reported. The round was co-led by Brevan Howard Digital’s Abu Dhabi subsidiary and Framework Ventures, with participation from Polychain Capital, Hack VC, and Tribe Capital. Investors backed Berachain through a “SAFT,” or simple agreement for future tokens. In March 2024, Berachain raised $69 million in funding, with a post-money valuation of $1.5 billion. The funds will be used for international expansion and further development.
The diverse integration of NFT and Meme culture: Berachain community is full of vitality
In the blockchain world, NFT and Meme culture have always been key factors in attracting users and investors. Berachain has successfully integrated NFT and Meme culture into its unique Proof of Liquidity consensus mechanism and rich ecosystem, forming a unique community culture and economic system.
NFT Ecosystem:
Berachain's NFT ecosystem has shown strong traction. Since the launch of the project, Berachain's Discord community has gathered more than 50,000 members, and more than 100 teams are building new and existing protocols on the local version of its development network (Devnet). The Berachain ecosystem already has more than $250 million in committed total locked value and will launch a public incentive testnet in the coming weeks.
Among them, Berachain's NFT projects such as Baby Bears, Bong Bears, Boo Bears and Bond Bears have been widely welcomed. According to Dune data statistics, as of May 10, 2023, the market value of these NFTs has exceeded US$100 million. These projects not only provide community members with rich interactive experiences, but also bring considerable economic benefits to the Berachain ecosystem.
The impact of Meme culture:
The influence of Meme culture in the blockchain community cannot be underestimated. Berachain has successfully attracted a large number of users and followers through its unique Meme culture. The founding team of Berachain is well aware of the importance of community culture, so they fully utilized the communication and influence of Meme culture in the process of project design and promotion.
For example, Berachain’s various Meme tokens and projects, such as Bong Bears and Baby Bears, have not only attracted widespread attention in the community, but also brought huge market value to the project itself. This combination of Meme culture and community interaction not only increases the popularity of the project, but also enhances the stickiness and participation of community members.
Explore Berachain's modular advantages: unique technical architecture
In the development of blockchain technology, modular design has become an important trend. Berachain has achieved an efficient, flexible and secure blockchain architecture through its unique modular design, providing more possibilities for users and developers.
Advantages of modular design:
Berachain's modular design makes it more flexible and efficient in architecture. By modularizing the core functions of the blockchain, Berachain can better adapt to the needs of different application scenarios and improve the scalability and maintainability of the system while ensuring security.
In addition, Berachain's modular design also enables it to better integrate and interoperate with other blockchain systems and applications. Through EVM compatibility and Cosmos SDK-based design, Berachain is not only able to support various applications in the Ethereum ecosystem, but also able to utilize the rich resources and tools in the Cosmos ecosystem.
Polaris EVM Framework:
Berachain's Polaris EVM framework is one of the core components of its modular design. The Polaris EVM framework enables Berachain to easily separate the EVM runtime layer to develop stateful precompiled and custom modules to create more efficient smart contracts. This design not only improves Berachain's flexibility and scalability, but also provides developers with more room for innovation and possibilities.
The design concept of the Polaris EVM framework is to separate the EVM execution environment from the underlying blockchain architecture, thereby achieving more efficient resource utilization and more flexible functional expansion. In this way, Berachain can not only support existing Ethereum applications, but also develop more complex and efficient smart contracts.
New consensus mechanism: Proof of Liquidity reshapes blockchain security
One of Berachain’s core innovations is its Proof of Liquidity (PoL) consensus mechanism. This mechanism introduces the concept of liquidity proof, making important improvements on the traditional Proof of Stake (PoS) and solving some key problems in the PoS system, such as equity centralization and insufficient validator incentives.
How PoL works:
The basic principle of the Proof of Liquidity consensus mechanism is to achieve network security and liquidity through collaboration between liquidity providers (LPs) and validators. Specifically, users obtain BGT (Bera Governance Token) by providing liquidity to Berachain's native decentralized exchange (BEX). Subsequently, users delegate their BGT to validators, who generate blocks and receive rewards based on the number of BGTs obtained. This mechanism not only incentivizes liquidity providers, but also enhances the enthusiasm of validators.
PoL has many advantages over the traditional PoS system. First, by combining liquidity provision with network security, PoL can effectively prevent the problem of equity centralization. Second, PoL enhances the security and stability of the entire ecosystem by incentivizing the collaboration of liquidity providers and validators. In addition, PoL also improves the flexibility and efficiency of the system by separating the functions of governance tokens (BGT) and fuel tokens (BERA).
The design of PoL also takes into account the balance of governance and economic incentives. By linking governance tokens to liquidity provision, PoL ensures the rationality and representativeness of governance decisions. At the same time, PoL encourages more users to participate in liquidity provision and network governance by allocating newly generated BGT to liquidity providers.
Chart data analysis: Berachain’s market performance
Daily trading volume analysis:
As can be seen from the chart, Berachain’s daily trading volume has experienced significant fluctuations since its launch. Especially in early 2024, transaction volume increased significantly, indicating that the market's attention and participation in Berachain has increased significantly. On January 17, 2024, daily trading volume reached its peak, exceeding 1.5 million transactions. This growth is mainly due to active transactions in multiple projects within the Berachain ecosystem, including Beradrome, Beratone, THJ, Beradoge, and Berachien, among others.
The cumulative transaction volume chart shows that Berachain's cumulative transaction volume has continued to grow since March 2023, especially in early 2024. As of May 2024, Berachain's cumulative transaction volume has exceeded 15 million. This data reflects Berachain's strong performance in the market and its broad user base.
Judging from the transaction volume performance of different projects, Beratone and THJ account for a large proportion of the transaction volume in the Berachain ecosystem. This shows that these projects are popular among users and have high activity. In addition, the transaction volume of projects such as Beradoge and Berachien also shows a steady growth trend, further proving the diversity and vitality of the Berachain ecosystem.
Conclusion
As an emerging Layer 1 blockchain project, Berachain has demonstrated strong innovation and market potential through its unique three-token system, rich NFT ecosystem, strong Meme culture and modular design. With the injection of more funds and the continuous growth of the community, Berachain is expected to become an important player in the blockchain field in the future and lead the development of the next generation of blockchain ecosystem. Whether for developers, investors, or ordinary users, Berachain provides abundant opportunities and possibilities, which deserves our continued attention and expectation.
The future of Berachain is full of infinite possibilities. We will continue to pay attention to its development and look forward to it creating more brilliance in the blockchain world.
