Layer-1 Project Berachain Raises $42 Million, Valuation Hits $420 Million

Berachain Secures $42 Million, Boosts Valuation to $420 Million

Originally an NFT project, Berachain has pivoted to become a DeFi-focused layer-1 blockchain. The project successfully raised $42 million in its Series A funding round in December 2022.

The funding round was led by Polychain Capital, with participation from other notable investors including Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX, Robot Ventures, and several undisclosed exchanges.

“We’re excited to announce our $42.0M fundraise from leading funds and angels including @polychaincap @hack_vc @daofive @tribecap @citizenxcrypto @shimacapital @robotventures @zmanian @musalbas and many others to build the deepest pools of liquidity in DeFi.” - Berachain (@Berachain) April 20, 2023

The funding has elevated Berachain’s valuation to $420.69 million. According to a press release, the Bera ecosystem has secured over $250 million in funding to deploy and launch a testnet in the coming weeks.

Technologically, Berachain is built on Cosmos’s Tendermint protocol and is compatible with the Ethereum Virtual Machine (EVM). The blockchain employs a Sybil resistance mechanism called Proof-of-Liquidity to address liquidity issues faced by other layer-1 blockchains.

Berachain allows users to leverage staking assets from DeFi protocols to enhance liquidity flexibility. Investors can stake and trade the same asset simultaneously, contrasting with popular chains like Ethereum, which locks assets for a fixed period.

Berachain’s origins are somewhat unconventional, starting from the meme NFT culture with a collection called Bong Bears—101 bears released on Ethereum around late 2021. Although transitioning to a layer-1 blockchain faced skepticism due to its perceived lack of polish, the effective staking liquidity concept has garnered significant attention. Berachain has achieved notable milestones and continues to prove its potential.

Additionally, Berachain plans to launch its native token BERA, a governance token BGT, and a stablecoin named HONEY.