In the crypto currency ecosystem, balances are changing rapidly. Berachain, the total locked value (TVL) to $ 3.26 billion, leaving behind Base and Arbitrum networks behind. This development turned Berachain into the sixth largest blockchain network in the defi ecosystem. So, what’s behind this rise? Could Berachain really be the next big defi strength? Here are the details!
How did Berachain pass Base and Arbitrum?
As of February 24, Berachain has achieved a great success by increasing its total locked value (TVL) to $ 3.26 billion. This increase put the network between six largest blockchain in the defi sector.
According to fashion show data, Berachain’s TVL leaving behind $ 2.9 billion Arbitrum and Base of $ 3.24 billion. This rise increased the popularity and liquidity of the network. Currently, the Berachain (Bera) token is traded for $ 6.75 and the market value is $ 715 million.
What does TVL increase mean?
As Kriptokoin.com, as we have reported, TVL refers to the total value of locking crypto assets in a blockchain network. This metric is used as a critical indicator to measure the growth of defi projects and the interest of investor.
A higher TVL indicates that the network has more capital and is used more actively in the defi ecosystem. On the other hand, low TVL values mean less liquidity and limited investment opportunities. Berachain’s rising TVL seems to have increased the trust and interest of users on the platform.
Which protocols come to the fore in the Berachain ecosystem?
The protocol, which has the largest TVL on Berachain, was Infrared Finance, the liquid stinging platform with $ 1.52 billion. He followed him, followed by Kodiak, a $ 1,12 billion -decentralized stock market (Dex). The Yield Farming protocol Concrete ranked third with a TVL of about $ 800 million.
These protocols are among the main structures that enlarge the ecosystem of the network and increase liquidity. The success of Berachain is directly linked to how actively these protocols are used.
Ethereum and Solana are still at the summit
Although Berachain suffers a rapid rise, Ethereum is located at the summit of the defi ecosystem. Ethereum continues to be the leader of the sector with a total of 58 billion dollars of locked value. This value accounts for 53.4 %of the entire defi market.
Solana ranks second with a TVL of $ 8 billion and holds 7.45 %of the market. If Berachain continues to grow, he can compete with these giants in the future.
Could Berachain really rival Ethereum?
Framework Ventures Founding Partner Vance Spencer, in his statement last September, claimed that Berachain could be Ethereum’s new rival and said:
This network can be a harbinger of a blockchain ecosystem that is fully compatible with liquidity evidence consensus.
According to Spencer, users who stake the bera token are forced to use the liquidity they earn in the ecosystem. This mechanism protects the liquidity in the network and contributes to its growth. This model can carry Berachain to a different point than its competitors.
