Berachain has risen to prominence as a top blockchain for net bridge inflows and is among the fastest-growing networks in terms of total value locked over the past month.
In the past month, Berachain (BERA) led the way in net bridge flows with $354.91 million, surpassing Aptos (APT) at $54.2 million and Solana (SOL) at $42.77 million.
Moreover, Berachain experienced an 18.89% increase in total value locked (TVL) over the last month, achieving the highest growth among the top 15 blockchains based on active addresses. This impressive growth comes despite Berachain hosting only 49 protocols compared to larger networks, indicating that liquidity is concentrated in a select few popular applications.
Just a week ago, on March 24, Berachain broadened its Proof of Liquidity (PoL) rewards, including not only BEX pools but also external applications and vaults. Given that this expansion has only recently occurred, the majority of the surge in liquidity and TVL can be linked to the initial influx of capital into BEX applications. The upcoming challenge is to determine whether this liquidity will remain within the ecosystem or flow out once early rewards are collected. Historically, new incentive programs typically lead to a spike in TVL, but maintaining those levels demands more than attractive yields. A steep decline in TVL over the next few months would suggest that the capital entering was temporary, with investors merely chasing PoL rewards before moving to better yield opportunities elsewhere.
After expanding the PoL beyond BEX, the BERA token appreciated from $6.76 on March 24 to a monthly peak of $8.57 on March 28, briefly testing resistance around the $8 mark. However, it has since retreated to $6.79 at the time of writing, marking an 8% drop in the last 24 hours and a decrease of over 18% in the past month.
The Relative Strength Index (RSI) peaked above 60 during the rally but has now fallen below 50, indicating a loss of bullish momentum. With the RSI currently at 46.39, the price is viewed as being in the neutral-to-bearish zone.
Nonetheless, the token price is still managing to hold at its historical support level near $6. If BERA can maintain this level and rebound with strong trading volume, it may retest the $8 mark and aim for the $10 threshold. Conversely, a drop below $6 could signal further declines, possibly leading towards the psychological support level of $5.
