In a stunning introduction to the blockchain world, Berachain has attracted the attention of DeFi aficionados, gaining a total value locked (TVL) of $1.817 billion on its first day of operating.
This swift rise has not only established Berachain as a meaningful DeFi player but has also vaulted it into the top 10 blockchains by TVL, along with over $50 million in DEX volume.
Despite being a new player, Berachain is thriving in the crowded blockchain landscape. The platform has quickly established itself as a go-to location for decentralized finance (DeFi) applications. Indeed, in the few months since it launched, Berachain has seen some metrics that are quite impressive. Take, for example, the number of protocols using the platform: 11 have been publicly listed, and six of those boast a Total Value Locked (TVL) of over $100 million.
Impressive Growth and Position in the Market
Berachain is ascending rapidly in the DeFi space. Right after its launch, its TVL hit 1.817 billion, making it the 8th largest chain by TVL. In a very short time, Berachain has placed itself in a unique position and, as of now, has one of the lowest Mcap/TVL ratios. It is sitting at 0.46. To understand how attractively this ratio is placed, and why it could indicate future growth, consider a couple of metrics. First, look at the Marketcap. And next, consider the Total Value Locked (TVL).
To compare, the Mcap/TVL ratio is a crucial indicator for assessing a blockchain’s value proposition relative to the liquidity locked within its protocols. Berachain has a low ratio, which may signal to investors that it’s an appealing, undervalued option. For DeFi developers, this is a clear sign that Berachain has the potential for great capital efficiency and adoption, which makes it an even more attractive option for building on the platform and for users to engage with its projects.
Strong DEX Performance and Protocol Growth
Since their launch, Berachain’s decentralized exchanges (DEXs) have experienced substantial activity, with over $50 million in trading volume. This number reflects burgeoning demand for DeFi services on the platform and indicates that Berachain’s DEXs are now dripping with, er, liquidity. Such volume is a basic sign of the platform’s chops—its ability to deliver secure, reliable trading opportunities for its users—while also making the DeFi ecosystem a livelier place for liquidity providers to transact.
Currently, the largest protocol in Berachain by TVL is KodiakFi, a decentralized exchange (DEX) that has emerged as a standout player in the Berachain ecosystem. KodiakFi, which has helped drive much of Berachain’s early success, is part of a larger trend where strong protocols are quickly gaining traction within the blockchain. The early dominance of KodiakFi is indicative of the confidence that investors and DeFi users are placing in Berachain’s technology and the opportunities it provides.
Beside KodiakFi, Berachain has six protocols with more than $100 million in TVL and nine with over $1 million locked in their platforms. This diverse growth across various protocols showcases the ecosystem’s potential and calls into question those “further development” bits in our intro. If you still remember them.
The early and widespread adoption of Berachain by numerous protocols suggests that the platform is on course to become a key player in DeFi. This attention is being paid not only to Berachain itself but also to the suite of protocols that it already houses and the many more that are likely to join its ecosystem soon. Berachain is thus being seen as a solid foundation for the next generation of DeFi applications that promises to serve up both capital efficiency and a safe harbor from the kinds of risks that have plagued users in some other DeFi protocols.
A Bright Future Ahead for Berachain
In the future, Berachain will continue to grow rapidly, and for good reasons. First, its TVL is decent and growing; its DEX is one of the better performers in the space, and its overall volume of business with DEX and CEX is impressive. Also, its MarketCap to Total Value Locked ratio is extremely low and probably will be seen as a “cheap” entry point for investors in retrospect. Finally, its volume of business appears to indicate that it is on a track to become a “successful” project in terms of satisfying the protocolic need for business opportunities (more on this below).
The blockchain sector is highly competitive, yet Berachain is distinguishing itself with a unique mix of impressive metrics and burgeoning user adoption to appear as a likely candidate for not just competing in the DeFi space but also for winning in it. Will Berachain succeed? All signs point to yes, but I don’t have a crystal ball, and anything can happen in the fast-moving sector that is decentralized finance.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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