Berachain Ecosystem Faces Significant Capital Outflow, Leading to Substantial Declines in Active Users and BERA Price

According to a report by The Defiant, the Layer 1 blockchain Berachain, focused on decentralized finance (DeFi), is experiencing significant capital outflows. Over the past nine days, Berachain has recorded a net outflow of $308 million, surpassing the second-highest net outflow from the Arbitrum ecosystem by 690%.

Source: Artemis Terminal

Meanwhile, data from TokenTerminal indicates that Berachain’s daily active user count has also sharply declined, dropping 61% from a peak of 60,000 on March 3 to 23,000. On the day of its mainnet launch on February 6, the daily active user count was reported to be 295,000, but this figure may have been inflated due to bot activity and airdrop claims, as it quickly fell back to around 30,000 just one week later.

In addition to the capital outflow, the performance of the BERA token has also been rather weak. Over the past week, the price of $BERA has dropped nearly 40%, with its market capitalization decreasing to $465 million, a decline of 53%.

According to data from DefiLlama, Berachain’s total value locked (TVL) has fallen 23% from its historical high of $3.5 billion on March 26 to $2.7 billion. However, considering the recent widespread collapse in the altcoin market, most blockchains’ TVLs have been affected, and Berachain currently remains the seventh-highest blockchain by TVL.

The primary cause of the capital outflow from Berachain remains inconclusive, with Kronos Research analyst Dominick John suggesting it may be attributed to a reduction in ecosystem incentives.