Berachain, the hottest topic at Token 2049 in Singapore, could grow into a significant competitor to Solana.
Berachain is branded as a “high-performance”
layer-1 (L1) blockchain
, aiming to turn liquidity into security through its unique proof-of-liquidity (POL) consensus mechanism.
While most investors are preoccupied with altcoins like Ripple’s XRP (
XRP
) overtaking Ether (
ETH
), some suggest that the real competitor could be a new token.
Berachain’s upcoming token (BERA) could be the next major Ether competitor, according to Vance Spencer, the co-founder of Framework Ventures.
Spencer told Cointelegraph during an interview at Token 2049 in Singapore:
Michael Anderson, co-founder of Framework Ventures, Smokey the Beta, co-founder of Berachain, Token 2049. Source: Cointelegraph
Solana’s (
SOL
) price has been in an over five-month downtrend since the beginning of April, falling over 8% during the past 30 days. Analysts are concerned that
Solana could see more downside
against Bitcoin (
BTC
), similar to Ether’s recent correction against Bitcoin, which reached its
lowest point in over three years
.
SOL/USD, 1-month chart. Source: Cointelegraph
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Berachain’s economic alignment is what markets are yearning for
The optimistic perspective comes as the industry is waiting for the launch of the Berachain mainnet, planned before the end of 2024.
The upcoming Bera token, currently live on testnet, will serve as the network’s gas token for paying transaction fees and as a staking token to enhance network security.
However, the mainnet launch could bring significant attention to the token, thanks to the Berachain’s economic alignment, explained Spencer:
Berachain’s POL consensus mechanism could usher in a fully-aligned blockchain ecosystem by diverting some of the profit back to ecosystem participants, added Spencer:
Spencer’s Framework Venture co-led a $100 million funding round into Berachain at the beginning of April 2024.
$100 million Berachain funding round. Source:
Framework Ventures
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Why are crypto investors so bearish?
Despite the optimistic outlook, Spencer also addressed the general negative, or bearish sentiment, in the crypto space.
According to Spencer, the past six months’ price action in traditional and digital markets is the main reason behind the poor investor sentiment.
He added:
However, other notable market analysts, including Michaël van de Poppe, predict a significant
rally for both cryptos and commodities
, due to the asset classes being “extremely undervalued.”
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Could Berachains latest token disrupt the prevailing dominance of Solana and Ether