Okay, so what if there was like a new player in the crypto world? One generating some serious buzz, maybe hinting at a totally fresh angle for businesses — uh, and investors too.
The big question everyone’s asking: could this be the opportunity, you know, the one you’ve been waiting for in this whole digital asset space?
It’s uh, it’s definitely fascinating seeing the attention around Berachain after it’s listing on BitGet. It’s a just-launched Layer 1 blockchain. And to really like get what makes it tick, we’ve been digging into a Bankless interview with one of the co-founders.
Sources Uncover a Hidden DeFi Giant
Goes by Smokeoky the Bar, and also a pretty detailed DeFi tutorial from Seb Montgomery. Plus some, you know, overviews from NextGen Crypto and Gordon Frayne.
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Lots of material exactly.
And so on this deep dive, our goal is pretty straightforward: pull out the key advantages, the future potential of Berachain, specifically for like business-minded folks and investors looking ahead.
Right, we’re diving into these sources to break down its uh, unique token system, look at potential ways to maybe earn something, and yeah, talk about what the future might hold.
And you know, the crypto space can seem super complex, right? So our goal here is just to boil down the key info, give some clarity, maybe some actionable insights, but without, you know, overwhelming everyone.
What Makes Berachain a Layer 1 Standout
All right, let’s jump right in then.
What is Berachain fundamentally?
Okay, so at its core, Berachain’s a new Layer 1 blockchain.
You can think of it like the basic infrastructure — the foundation — where other apps get built. Uh, similar role to networks like Ethereum or Solana or, you know, BNB Chain.
EVM Compatibility Means Faster Growth
So a completely new foundation — what makes it uh, stand out from the ones we already know?
Well, a really big difference is that it’s EVM identical. Now, for developers, that’s a huge plus.
EVM — that’s the Ethereum Virtual Machine, right?
Being identical means projects already built for Ethereum can like move over to Berachain pretty easily. They can basically just redeploy their existing cloud h.
That sounds like it could really speed up the growth of its whole ecosystem.
Precisely.
Introducing Proof of Liquidity
And then there’s this innovative proof of liquidity consensus mechanism they’ve got. It’s designed to uh, align providing liquidity with the network’s security, right at the protocol level.
It’s a different take compared to, say, traditional proof of stake, where, you know, your staked assets are often just locked up, not really usable elsewhere in DeFi.
Proof of liquidity — yeah, that’s definitely a new term.
The Three Token System Explained
How does that actually work, like the mechanics? Okay, so it uses a three-token system.
First, you’ve got BERA — that’s the gas token. Pays for transaction fees, kind of like ETH on Ethereum.
Seb Montgomery mentioned in his video the price was around what, 588 cents when he recorded. Okay.
And NextGen Crypto noted there’s a total supply of 500 million BERA with roughly 10% annual inflation. Got it. So BERA powers the network — what about the other two?
Right, second token is BGT — that’s the Berachain governance token. Now this one’s non-transferable. It kind of stays bound to the wallet that earned it — they call it soulbound.
You earn BGT by providing liquidity to DApps — decentralized apps on Berachain. And importantly, uh, the Bankless interview pointed out you can burn one BERA to create one BGT.
Honey: A Stablecoin With Real Utility
Okay, so it’s a reward for actually like contributing liquidity. And the third one? That’s HONEY.
It’s a stablecoin pegged to the US dollar. So Montgomery explained it’s minted from USDC, so it tries to keep that stable value.
But you know, like any stablecoin, you got to be aware of potential smart contract risks. Right — always.
Why Proof of Liquidity Changes Everything
So three tokens, specific roles. Now this proof of liquidity model — why should businesses and investors really be paying attention to this?
Okay, this is where it gets really interesting I think. Proof of liquidity directly incentivizes users to provide liquidity to those DApps, right, by rewarding them with BGT.
This creates a really strong reason for capital to flow into the Berachain ecosystem. So by putting their assets into these apps, users get governance power.
Exactly. And it even goes a step further. The validators on Berachain — the ones confirming transactions — they can actually direct the BGT rewards they get towards specific DApps.
DApps Compete to Attract Liquidity
Oh yeah, yeah. It basically creates this like marketplace where DApps compete for liquidity by offering incentives to the validators.
Huh. That sounds like a really efficient way to get new projects funded — or at least liquid — quickly. It is.
The potential result is, you know, much deeper liquidity for DApps on Berachain compared to maybe other new layer ones. For a new project, that could be huge, right? Helps them attract users and capital way faster.
Like Smokeoky the Bar said, the whole design tries to create this positive feedback loop where successful apps benefit the chain and the chain benefits the apps. So it’s not just about securing the network — it’s actively growing the whole thing.
How to Make Money on Berachain
Okay, let’s talk money. How can someone potentially, you know, make money with Berachain? Right, okay — several potential ways.
One is just trading Berachain, the gas token. Gordon Fra mentioned its price fluctuated in early 2025.
Seb Montgomery also pointed out its like low market cap in FDV back then, which suggests potential for big price swings. You know, volatility — which can mean opportunity for traders.
Liquidity Pools Offer Passive Rewards
Okay, so like any new crypto — price swings, got it. What else? Other ways investors might get involved?
Another big one is providing liquidity. So you deposit your crypto into liquidity pools on an exchange like BitGet — maybe like BERA paired with HONEY. You earn a bit of the trading fees whenever people swap in that pool.
And on Berachain, certain pools also reward you with those BGT tokens. Seb Montgomery’s tutorial specifically showed pools with the BGT logo, giving those extra rewards.
He even showed some example APRs, but you know, those yields change all the time. So you’re kind of earning passive income from fees — and maybe getting governance tokens too.
Exactly. Then there’s staking. Bar platforms like uh, Infrotive Finance — Gordon Fra mentioned them — they offer liquid staking.
Staking, Farming, and Maximizing Yield
So you stake your BERA, help secure the network, and you get IEA back, right? That represents your staked BERA and it earns yield from the validators.
The APRs were apparently around 6% when Fra made his video. Liquid staking is nice — yeah, it keeps things more flexible than just locking it up.
Definitely. And there’s also yield farming. Seb Montgomery talked about reward vaults — basically, you stake the LP tokens you got from providing liquidity.
Okay — and you can earn even more BGT rewards. It’s kind of like another layer to optimize your earnings.
Wow.
Sounds like they really want people actively participating.
They do.
Airdrops, Incentives, and Community Ownership
And finally, you got to think about potential airdrops and other incentives. NextGen Crypto highlighted that almost half — like 48.9% — of the total BERA supply is set aside for community stuff.
That’s a lot. Yeah, that includes potential airdrops for early users, various incentives to get people involved.
Uh, the Bankless interview also mentioned their RFP program — Request for Proposal — aiming to give tokens to teams building cool stuff on Berachain. So definitely worth keeping an eye out for those.
Almost half the supply for the community — that’s a serious commitment.
Explosive Growth and Market Signals
Okay, looking ahead then — what’s the future potential here? What are the signs?
Well, the early numbers are pretty striking. Gordon Fra really emphasized the fast growth in TVL — total value locked — right after the mainnet launched.
It shot past $2.9 billion. At one point, it was the sixth-largest network by TVL. It grew like 55% in just one month.
Wow. That kind of quick value accumulation really signals strong early interest — you know, adoption. Yeah, that kind of growth right out of the gate is definitely something to notice.
Real Ecosystem With Real Builders
And it’s not just the money locked up — there’s a really vibrant, growing ecosystem of DApps actually being built on Berachain. Smokeoky the Bar mentioned like over 60, maybe 75 novel applications with interesting features.
So it suggests a really rich, diverse application layer emerging — doing real things. So it’s not just the tech, it’s the actual use cases being built.
Exactly. Plus remember the EVM identical thing — combine that with their Beacon Kit SDK, their software kit, and it could make it easier to build application-specific layer 2s on top of Berachain.
That was discussed on Bankless. Layer 2s on a new layer 1 — interesting architecture.
Institutional Backing and Big Investments
Yeah, kind of modular. And importantly, Berachain has pulled in serious investment from big VCs and strategic players — Polychain Capital, Framework Ventures, Samsung Next, others.
Right, the funding rounds mentioned like $142 million, $100 million — that shows strong institutional confidence in what they’re doing. Yeah, that kind of backing definitely adds credibility, gives them resources.
Solving DeFi’s Liquidity Problem
And let’s not forget the core idea — tackling that fragmented liquidity problem in DeFi. Proof of liquidity is their direct shot at fixing that.
Trying to make Berachain the place for deep, easy-to-access liquidity. Solving a fundamental DeFi problem could be a real edge for sure.
And finally, their roadmap shows ongoing work — things like enabling withdrawals, implementing slashing for validators to keep them honest, optimizing their layer 2 stuff.
Okay — it shows they’re committed to the long haul. You know, stability, scalability.
Final Thoughts and Investor Takeaways
Okay, lots of positive signs. Future plans. So let’s quickly recap for everyone — what are the main reasons Berachain might grab the interest of, say, businesses and investors?
Okay, so Berachain is this new Layer 1, right, with a really novel proof of liquidity system aimed at boosting liquidity. Its fast TVL growth, this growing DApp ecosystem, and the serious financial backing all point to strong early momentum and, you know, potential.
Uh-huh. For investors, there are multiple ways to potentially earn yield — trading, providing liquidity, staking, plus getting involved in governance, maybe catching incentives.
For businesses, that EVM compatibility is key. And the focus on solving liquidity could make it a really attractive place to build — tap into a liquid DeFi scene.
Sounds like a potentially really compelling opportunity brewing. Yeah, but as always in crypto —
Absolutely. You have to remember the risks. There’s always smart contract risk in the DApps.
Market volatility is just part of crypto. And you know, unforeseen problems can hit any new tech.
We always say it, but seriously — do your own thorough research. Understand the risks before putting any money in.
Okay, so ready to maybe dive deeper and potentially capitalize on this? Well, for a limited time, you can save 20% on your Big Jet trading fees — just use our referral link down below.
Definitely don’t miss out on exploring what’s happening at the edge of DeFi. Why?
And it really makes you wonder, right — could Berachain’s whole approach to liquidity actually be the thing that kicks off the next big wave of DeFi adoption?
Pulling in not just crypto natives, but maybe mainstream users and businesses too.
Definitely something to chew on as this space keeps evolving.