Berachain's Daily Active Users Drop 33% Amid $465M Sell-Off

Berachain, a prominent blockchain network, has experienced a significant decline in its daily active users, with a 33% drop recorded. This decline is indicative of a broader trend of waning investor interest and liquidity outflows from the network. Over the past day, Berachain witnessed one of its most substantial sell-offs, as the total value locked (TVL) in the network declined sharply by 22%, falling from $2.099 billion to $1.634 billion. This equates to $465 million worth of BERA being sold, highlighting a notable surge in liquidity outflows from the network and its protocols.

The decline in TVL is accompanied by a significant outflow of funds, with Bridged Netflow recording a $75 million outflow. This movement of funds out of Berachain suggests reduced developer deployment and waning cross-chain interest. The liquidity outflows and declining TVL often reflect a loss of trust in the network, especially when paired with falling participation across protocols.

BERA’s investor base has also shrank dramatically, with Daily Active Addresses dropping sharply. Over 18,600 investors have exited the network, with Active Addresses falling from 55,900 on the 7th of May to 37,600. Despite this exodus, Daily Transactions still hover around 1.5 million, signaling persistent short-term activity. However, the ongoing price decline suggests that this cohort is gradually reducing its exposure to BERA. If this trend of investors exiting or significantly cutting holdings continues, the price could face sustained downward pressure.

The lack of market interest in BERA is further evident in the drop in Stablecoin Inflows and DEX Trading Volume. In the past 7 days, Stablecoin Inflows into Berachain fell by 36.32%, declining to $322.38 million. This sharp drop confirms weakening demand and reduced on-chain activity within the ecosystem. Additionally, DEX Volume has tumbled to $66.2 million—a notable low for the protocol. Low DEX trading activity indicates minimal interaction and usage, suggesting that many investors have likely sold and exited the market. If these activity levels continue to decline, BERA’s price is likely to suffer further, potentially reaching new lows.

Analysts suggest that the combination of liquidity outflows, declining TVL, and reduced investor participation paints a bleak picture for Berachain. The network's recent performance, marked by a 24% rally over the past week followed by a 2.18% decline in the past 24 hours, reflects the volatile sentiment and fading liquidity that continue to weigh heavily on BERA’s price trajectory. The pullback in BERA’s price coincides with worsening sentiment and fading liquidity, two factors that are likely to continue influencing the network's performance in the near future.

Ask Aime: "Are stocks recovering after BERA's dramatic sell-off?"