Berachain (BERA) Token Sees $4.8B in Trading Volume on First Day, But Price Volatility Ensues

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.

Following its launch yesterday, the Berachain (BERA) token experienced significant trading activity, with perpetual contract volume on Binance reaching a staggering $4.8 billion within the first 24 hours. However, the token’s price also exhibited high volatility, opening at $15.5 but quickly dropping to around $8. At the time of writing, BERA is trading at $7.55.

The steep decline in BERA’s price could be attributed to several factors, including heavy sell-offs, liquidations, or profit-taking after the airdrop. It’s important to note that a rapid price drop is common for new tokens, especially those with airdrops, as early recipients often sell immediately.

One interesting aspect is that BERA has unusual negative fee rates on Binance (-2,400%) and Bybit (-2,890%). These negative fee rates indicate that traders are being paid to provide liquidity rather than being charged.

Typically, this occurs when exchanges offer incentives to drive trading activity, which could be due to high market demand or aggressive competition among market makers. In this case, the negative fees on CEXs could indicate a push to maintain liquidity, possibly signaling that exchanges expect further market activity around BERA.

To provide some context, 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.