Berachain (BERA)

Layer 1 blockchain @berachain plans to bootstrap businesses that add value to the network’s native token. BERA is up 40% since the team released its end-of-year update yesterday. @Squiffs_ reports: https://t.co/CBM4gfumf9

Please give a few Layer1 names with cap < $100m, volume and chain health are acceptable for now. Short‑term token should not be overly inflationary… Any type will get a boost if you add a line like $Bera.

It's liquidation time for BERA bears https://t.co/NhtzVPFnqW

$BERA https://t.co/yETQz073jw

According to Wu, the Berachain Foundation released its year‑end update stating that it has cut most of the retail‑focused marketing team and shifted resource emphasis to fundamental development; the foundation said the staff departure process was amicable and confirmed that lead developer Alberto will leave. Going forward, the foundation will concentrate its effort on 3–5 high‑confidence applications, focusing on projects whose revenue does not depend on market fluctuations and have low overlap with the existing ecosystem, and will provide dedicated PoL token incentives and official support. https://t.co/zfw9ejFYvy

Be @berachain > Raise $142M > Promise everyone a revolutionary Proof of Liquidity model > In fact no liquidity and apps > $185M TVL all-time low > $78M market cap all-time low > $117 in chain fees Straight to zero https://t.co/1Pk7V04JGZ

BEHIND THE EXTREMELY LOW REVENUE OF CHAINS? Many chains were highly anticipated when they launched, but so far their revenue has been very low, revealing contradictions in their operating models. Some chains have exposed clear weaknesses. - EXAMPLE: @Berachain: It currently holds $173 million USD (TVL) and has $456 million USD of bridged TVL, but the chain only earns $43 in fees per day. 1. Chain revenue *Understood as a toll road fee. This fee needs to be very low to encourage users to use the network. - Chains like @Plasma (L1 settlement) or Scroll (Ethereum L2) intentionally design extremely low gas fees (almost free). The goal is to attract users and cash flow (TVL). If gas fees are too high, users will switch to other chains. - With @Scroll_ZKP, despite earning $480 in gas fees from users, they have to pay a large amount of money to "rent space" to store secure data on Ethereum (L1). => Therefore, the actual profit (Chain Revenue) is eroded, leaving only a very small amount ($258). - Berachain ($43 revenue): This is a typical example of 100% subsidized pricing. With $173 million TVL but only $43 in fees, it means that transactions on Berachain are currently almost free. => They are sacrificing revenue to maximize cash inflows (Inflows $137k/day). The goal is to let users experience the Proof of Liquidity mechanism without barriers. - @Somnia_Network ($180 revenue): This chain is still in its early stages. With a small number of users (low TVL), low revenue is inevitable because there is no "network effect". 2. App revenue *App Revenue comes from the service fees of DeFi protocols (DEX, Lending, Perpetuals). - Users don't want to pay much for gas fees, but they are willing to pay 0.3% of the transaction fee (Swap fees) in exchange for investment returns or financial leverage. At this point, the ecosystem's capacity of the chains begins to show its effectiveness - With Plasma $XPL, the product is focused on Stablecoin settlement, and the high volume generates good App revenue. It earns $29,802 in revenue while the Chain's revenue is only 128$ - With Scroll $SCR, the transaction volume is stable. The infrastructure accepts losses to nurture the App's development. It generates App revenue of $23,341 with only $258 in network fees - Conversely, Berachain $BERA has a DEX volume of only $1.29 million. Compared to the TVL of $173 million, this figure is very low (low capital turnover rate). This shows that users are sending money into farm airdrop/take positions rather than actually trading much. - Somnia $SOMI has a volume of just $25k, so it hardly generates App revenue. 3. Personal conclusions - After the TGE, we will see the operating models of chains and their ecosystems generating revenue - With chains that have a model that solves real user problems, they can generate long-term revenue in the market - This adds a factor for the chain to develop - What do you guys think?