Cumulative financing of $142 million, Berachain's key metrics continue to surge

May 13, 2024 news, former Polygon Labs DeFi head Jack Melnick has joined Layer 1 developer Berachain as the same position. Berachain completed a $100 million Series B funding round in April this year, led by Brevan Howard Digital and Framework Ventures. As a highly anticipated emerging public chain project, every step of Berachain's development resonates with the market.

Berachain's Momentum at the Beginning of This Year: Funding Increased from $42 Million to $100 Million

Since its inception, Berachain has attracted widespread attention.
In April 2023, Berachain completed a $42 million funding round led by Polychain Capital, with participation from OKX Ventures, Hack VC, Dao5, Tribe Capital, Shima Capital, Robot Ventures, Goldentree Asset Management, former partners of Dragonfly Capital, Celestia founder Mustafa Al-Bassam, Tendermint co-founder Zaki Manian, and over 20 other DeFi project founders.
Berachain is a Layer 1 blockchain built on the Cosmos SDK and compatible with EVM, protected by a Proof of Liquidity consensus mechanism. Its three-token system (BERA, HONEY, BGT) is not only unique but also endows the network with powerful functionality and flexibility.
In April 2024, Berachain announced that its Series B funding scale had increased to $100 million, approximately 45% higher than previously reported. This round of financing was co-led by the Abu Dhabi branch of Brevan Howard Digital and Framework Ventures, with participation from institutions such as Polychain Capital, Hack VC, and Tribe Capital. Investors supported Berachain through a "SAFT" or a simple agreement for future tokens. In March 2024, Berachain secured $69 million in funding, achieving a post-investment valuation of $1.5 billion. These funds will be used for international expansion and further development.

Diverse Integration of NFT and Meme Culture: Berachain Community is Vibrant

In the blockchain world, NFT and Meme culture have always been key factors in attracting users and investors. Berachain successfully integrates NFT and Meme culture through its unique Proof of Liquidity consensus mechanism and rich ecosystem, forming a distinctive community culture and economic system.

NFT Ecosystem:

Berachain's NFT ecosystem has already shown strong appeal. Since the project's launch, Berachain's Discord community has gathered over 50,000 members, with more than 100 teams building new and existing protocols on its development network (Devnet). The Berachain ecosystem has over $250 million in 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 $100 million. These projects not only provide rich interactive experiences for community members but also bring considerable economic benefits to the Berachain ecosystem.

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 understands the importance of community culture, so they fully leverage the communicative power and influence of Meme culture in the project design and promotion process.
For example, various Meme tokens and projects from Berachain, such as Bong Bears and Baby Bears, have not only attracted widespread attention within the community but also brought significant market value to the project itself. This approach, which combines Meme culture with community interaction, has not only increased the project's visibility but also enhanced the stickiness and participation of community members.

Exploring Berachain's Modular Advantages: Unique Aspects of Technical Architecture

In the development of blockchain technology, modular design has become an important trend. Berachain achieves an efficient, flexible, and secure blockchain architecture through its unique modular design, providing users and developers with more possibilities.

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 while improving the system's scalability and maintainability without compromising security.

Moreover, Berachain's modular design allows for better integration and interoperability with other blockchain systems and applications. By being EVM-compatible and based on the Cosmos SDK design, Berachain can support various applications within the Ethereum ecosystem while leveraging 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 allows Berachain to easily separate the EVM execution layer to develop stateful precompiled and custom modules, thereby creating more efficient smart contracts. This design not only enhances Berachain's flexibility and scalability but also provides developers with more space and possibilities for innovation.
The design philosophy of the Polaris EVM framework is to separate the EVM execution environment from the underlying blockchain architecture, achieving more efficient resource utilization and more flexible functional expansion. Through this approach, Berachain can not only support existing Ethereum applications but also develop more complex and efficient smart contracts.

New Consensus Mechanism: Proof of Liquidity Reshaping 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 significant improvements on the traditional Proof of Stake (PoS) basis, addressing some key issues in PoS systems, such as stake 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 provide liquidity to Berachain's native decentralized exchange (BEX) to earn BGT (Bera Governance Token). Subsequently, users delegate their BGT to validators, who generate blocks and receive rewards based on the amount of BGT they obtain. This mechanism not only incentivizes liquidity providers but also enhances the enthusiasm of validators.
Advantages of PoL:
PoL has many advantages compared to traditional PoS systems. First, by combining liquidity provision with network security, PoL effectively prevents stake centralization issues. Second, PoL enhances the security and stability of the entire ecosystem by incentivizing collaboration between liquidity providers and validators. Additionally, PoL improves the system's flexibility and efficiency by separating the functions of governance tokens (BGT) and fuel tokens (BERA).
The design of PoL also considers the balance between governance and economic incentives. By linking governance tokens with liquidity provision, PoL ensures the rationality and representativeness of governance decisions. At the same time, PoL incentivizes 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:

From the chart, it can be seen that Berachain's daily trading volume has experienced significant fluctuations since its launch. Particularly in early 2024, trading volume increased significantly, indicating a notable rise in market attention and participation in Berachain. On January 17, 2024, the daily trading volume peaked, exceeding 1.5 million transactions. This growth is mainly attributed to the active trading of multiple projects within the Berachain ecosystem, including Beradrome, Beratone, THJ, Beradoge, and Berachien.

Cumulative Trading Volume Growth:
The cumulative trading volume chart shows that Berachain's cumulative trading volume has been steadily increasing since March 2023, especially achieving a significant boost in early 2024. As of May 2024, Berachain's cumulative trading volume has exceeded 15 million transactions. This data reflects Berachain's strong performance in the market and its broad user base.
Project Performance Analysis:
From the trading volume performance of different projects, Beratone and THJ account for a large proportion of the trading volume within the Berachain ecosystem. This indicates that these projects are quite popular among users and have high activity levels. Additionally, projects like Beradoge and Berachien also show a stable growth trend in trading volume, further proving the diversity and vitality of the Berachain ecosystem.
Conclusion
As an emerging Layer 1 blockchain project, Berachain demonstrates strong innovation and market potential through its unique three-token system, rich NFT ecosystem, robust Meme culture, and modular design. With more funding and the continuous growth of the community, Berachain is expected to become an important player in the blockchain space, leading the development of the next generation of blockchain ecosystems. Whether for developers, investors, or ordinary users, Berachain offers abundant opportunities and possibilities, making it worthy of our continued attention and anticipation.
The future of Berachain is full of infinite possibilities, and we will continue to monitor its development dynamics, looking forward to its creation of more brilliance in the blockchain world.