Berachain Suffers $300 Million in Net Outflows

DeFi-focused Layer 1 blockchain, Berachain, is experiencing significant capital flight, showcased by a sharp drop in active addresses and its native token price.

Over the last nine days, Berachain has recorded a net outflow of $308 million, a whopping 690% more than the ecosystem with the second-largest net outflow, Arbitrum.

The chain’s daily active user (DAU) count is down 61% to 23,000 from its all-time high of 60,000 on March 3, according to TokenTerminal. The data shows that there were reportedly 295,000 DAUs on the chain’s launch day, Feb. 6, but that elevated figure is presumably due to a combination of bot activity and airdrop claimers, as DAUs quickly reverted to the 30,000 mark just a week later.

In addition to the net outflows, the BERA token has also been struggling. BERA is down 40% in the last week to a $465 million market capitalization, or a $2.1 billion fully diluted valuation. Despite its recent downtrend, the token bounced 12% on the back of President Donald Trump’s 90-day tariff policy delay.

Between the outflows and the cratering token, Berchain’s total value locked (TVL) is down 23% to $2.7 billion from its all-time high of $3.5 billion on March 26, according to DefiLlama. However, considering the recent carnage in the altcoin market, most blockchains’ TVLs have suffered over the last week, and Berachain remains the seventh-largest blockchain by TVL.

There does not appear to be a distinct catalyst for the outflows. Some users speculate that Berachain’s success relies on a more risk-on-market environment due to its proof-of-liquidity multi-token model, while analysts attribute it to a reduction in ecosystem incentives.

Dominick John, an analyst at Kronos Research, told the Defiant, “The recent outflows from the Berachain ecosystem appear to be driven by a combination of expiring high-APY incentives to upwards of 30%, and broader market uncertainty.”

“With rewards tapering off, it's no surprise that whales are reallocating capital to other chains offering more attractive risk-reward profiles. It's a natural rotation we often see when early-stage ecosystems mature past their initial liquidity incentives,” John concluded.