- BERA’s perpetual contract volume surpasses $4.8 billion within the first 24 hours
- It opened at $15.5, then dropped to roughly $8
- BERA has a negative fee of -2,400% on Binance and -2,890% on Bybit
Following its launch yesterday, the Berachain (BERA) token experienced substantial trading activity, with perpetual contract volume topping $4.8 billion within the first 24 hours.
However, price volatility soon followed as BERA opened at $15.5 but quickly dropped to around $8.
At the time of writing, its price stands at $7.55.
Such a steep decline suggests heavy sell-offs, liquidations, or profit-taking after the airdrop. It’s worth noting that a rapid price drop is typical for new tokens, especially those with airdrops since early recipients often sell immediately.
Unusual Negative Fees on Exchanges
What is interesting here is that BERA has unusual negative fee rates on Binance (-2,400%) and Bybit (-2,890%). These could indicate that traders are being paid to provide liquidity rather than being charged.
This usually happens when exchanges offer incentives to drive trading activity, potentially due to high market demand or aggressive competition among market makers.
The negative fees on CEXs could indicate a push to maintain liquidity, possibly signaling that exchanges expect further market activity around BERA.
Related: Bittensor Integrates EVM, Bringing DeFi to its Decentralized AI Platform
What is Berachain, Anyway?
Berachain is an EVM-identical Layer 1 blockchain that utilizes a novel Proof of Liquidity (PoL) consensus mechanism, aiming to align liquidity provision with network security. The platform’s native token, BERA, serves multiple roles within the ecosystem.
On February 6, 2025, Berachain launched its mainnet and announced an airdrop of approximately 79 million BERA tokens to eligible users, accounting for 15.8% of the total supply.
BERA is used to pay for transaction fees on the Berachain network, and BERA holders can participate in the governance of the network, influencing decisions related to protocol upgrades and other critical parameters.
As for staking, validators are required to stake BERA tokens to participate in the network’s consensus process, thereby securing the blockchain.
Major cryptocurrency exchanges, including Binance, OKX, and MEXC, have listed BERA, improving its accessibility to traders and investors.
Related: KuCoin Lists Berachain (BERA) with Expanded Trading Services
All things considered, Berachain’s approach with its PoL consensus mechanism and the multifunctional utility of the BERA token positions it as a noteworthy project in the blockchain space – though it’s too early to tell how successful it will be.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
