TLDR
- In the last week, Berachain (BERA) climbed by 37%, with its current value sitting around $8.04.
- The newly launched Proof of Liquidity system is seen as a major factor behind the recent spike in BERA's price.
- Berachain's Total Value Locked (TVL) has outpaced that of both Avalanche and Arbitrum.
- Chart patterns hint at a potential breakout from the symmetrical triangle formation.
- A breakout could see BERA reaching a fresh peak of $12.37.
Over the past seven days, Berachain’s BERA token has jumped by 37%, trading near $8.04. This surge propelled it into the ranks of top 100 cryptocurrencies by market cap, now valued at $864 million.
This recent upswing in BERA's price is tied to the debut of Berachain’s innovative Proof of Liquidity system, which has stirred enthusiasm in the crypto community, even as other markets show downward trends.
Berachain started its mainnet in February 2025, granting early users a $1.17 billion airdrop. Originally limited to its BEX decentralized exchange, it quickly grew from there.
The new Proof of Liquidity system marks a shift from standard Proof of Stake models. Instead of staking with validators, participants are encouraged to engage in DeFi liquidity pools, earning BGT, Berachain's governance token.
Validators are responsible for staking BERA tokens to maintain network security and propose blocks, receiving BGT in return. These tokens flow into reward vaults and can be exchanged back for BERA on a 1:1 basis, albeit this cannot be undone.
The Proof of Liquidity launch included 37 reward vaults that are on the whitelist. Initially, these focus on pools like BEX, Kodiak, and Beradrome.
The vaults combine major tokens such as BERA, HONEY, USDC, and wETH to ensure deep liquidity. BERA's role in these pools has increased trading activity, with 24-hour trading volume reaching $165.9 million.
Market Analysis
Analysis of the charts shows BERA trading within a symmetrical triangle pattern, having broken out from a short-term parallel channel since March 11.
This breakout appears to indicate the start of a fresh rally rather than just a corrective move. After hitting $8.06, the price dipped slightly, affirming the channel's resistance line now serving as support.
The RSI remains above the overbought range daily, while the 14-day EMA offers steady support for BERA's price trajectory, indicating a positive outlook in the following week.
The emergence of a Cross EMA 50/200 on Berachain’s chart points towards a Golden Cross, usually an indicator of sustained upward market movement.
Should market conditions continue to favor sellers, BERA might aim for its immediate resistance around $9.35, potentially soaring to $12.37 if above that mark, setting a new all-time high.
In the event of bear domination, BERA might slip to its support level at $7.15, with further pressure possibly pushing it to $5.
Looking beyond decentralized exchanges, Berachain is eyeing expansion into sectors like real-world assets and gaming. A second set of vaults is in review, with decisions slated by March 27th.
A central aspect of the PoL system is governance, with BGT holders now wielding influence over the network's future. While the initial airdrop provided groundwork, PoL distributes control by letting the community direct incentives.
Homme Bera, the pseudonymous founder, emphasized that the Proof of Liquidity launch was a pivotal moment in the network’s progression, promising continuous growth. The forthcoming evaluation of additional vaults could further extend the ecosystem.
