Berachain Price Prediction: BERA Forecast Pre-TGE

Berachain, a notable Layer 1 blockchain, is expected to launch TGE for its Native Token $BERA on most of the prominent CEX at 13:00 UTC. The appeal of Berachain will be explained below, along with predictions about the value of the BERA token.

The Appeal of Berachain

Berachain introduces a novel Proof-of-Liquidity consensus mechanism, which diverges from traditional Proof-of-Stake (PoS) or Proof-of-Work (PoW) models. PoL incentivizes users to provide liquidity to the network, thereby enhancing the liquidity of decentralized applications (dApps). This mechanism aligns the interests of validators, users, and developers, fostering a more interconnected and efficient ecosystem.

It has cultivated a strong community, partly due to its origins in the NFT space with projects like “Bong Bears.” This community support has translated into significant funding and a vibrant ecosystem, with over 270 projects committed to the network as per information on X.

By embedding liquidity solutions at the consensus level, Berachain aims to address one of the biggest challenges in DeFi – liquidity fragmentation. This approach not only secures the network but also enhances the functionality and attractiveness of dApps built on it.

This new Layer 1 blockchain has raised over $3.32 billion in liquidity prior to its mainnet launch. This was achieved through the Boyco Vault program, which incentivized users to lock up assets like ETH and WBTC in exchange for BERA airdrops. The overwhelming success of this program demonstrates the strong interest and confidence in Berachain from the crypto community.

Berachain has partnerships, like with LayerZero Labs, that aim to make it omnichain, connecting it to over 50 blockchains. This interoperability is crucial in the blockchain space for seamless asset and information transfer across different networks.

The blockchain supports a range of DeFi applications from decentralized exchanges (like Berachain BEX) to specialized projects like Apiarist Finance for yield farming, and Boink for blockchain gaming, showcasing its versatility and potential for broad adoption.

Berachain Tokenomics

Token Allocation:

• Ecosystem & R&D: 20%
• Community: 48.9%
• Airdrop: 15.8%
• Community Initiatives: 13.1%
• Initial Core Contributors: 16.8%
• Investors: 34.3%

The initial circulating supply of $BERA is 107,480,000 BERA (21.5% of the Total Supply), while the Total Supply is 500,000,000 BERA.

BERA Release schedule

The token distribution schedule for BERA is considered quite reasonable. After a one-year cliff, 1/6 of the allocated tokens are unlocked. The remainder will be subject to linear vesting over the next 24 months.

BERA Price Prediction

Berachain: A Promising Layer 1 Blockchain

Berachain, a notable blockchain, has cultivated a thriving ecosystem and community over an extended period. Consequently, there’s considerable anticipation surrounding both the scale of the Farmer team’s Airdrop and the token’s price at the TGE.

Market Context and Comparisons

• Sui Network: This Layer 1 blockchain launched with a Fully Diluted Valuation (FDV) of $13.9 billion but experienced a subsequent decline due to prevailing market conditions and liquidity constraints.
• Hyperliquid: This project serves as a bullish indicator. At its TGE, $HYPE closed the day with an FDV of $14.1 billion and rapidly surged to an astounding $42.1 billion within days.

Berachain’s Potential

Favorable Market Timing: Berachain’s Mainnet launch coincides with a gradual recovery in the crypto market, potentially influenced by President Trump’s re-election, which may lead to relaxed crypto regulations and the introduction of fresh liquidity into the cryptocurrency market.

Strategic Token Listing: Unlike recent trends where tokens launch at inflated valuations followed by dumps benefiting Venture Capital firms, $BERA has been listed on major CEXs to ensure liquidity. This suggests a possibility of $BERA launching with an FDV comparable to Aptos or Mantra (currently around $7 billion – $10 billion). This range seems reasonable considering the market conditions and could provide a buffer against initial price drops due to the Airdrop as well as serve long-term growth orientation if any.

To reach the current milestone of Hyperliquid (HYPE), where the Fully Diluted Valuation (FDV) reaches $25B, would be quite challenging. Hyperliquid is a self-sufficient Layer 1 because it does not require funding from venture capitalists (VC) or listing fees and liquidity from CEX. This means that the source of generated funds completely lies in the trading volume from users, which Hyperliquid has empowered excellently. 31% of the total supply was airdropped to users, yet in return, the token price has steadily increased from the TGE to its All-Time High (ATH). Conversely, Berachain has only recently appeared on Testnet and just started deploying on Mainnet, so applying the price trajectory of BERA with HYPE is unlikely.

There are two most likely scenarios: BERA could be listed with a stable FDV (comparable to Aptos and Mantra) to face initial temporary price dump pressure followed by long-term growth, or listed with Hyperliquid’s current FDV ($25B), which would be an extremely high number to serve the interests of VCs and exchanges as seen in many previous cases.

However, it should be noted that these are all speculations and should not be taken as investment advice.

Details of BERA TGE Valuation Prediction: