Following unexpected support from Binance, the world’s largest crypto exchange platform, a competitor of the popular altcoin Ethereum (ETH) is experiencing a surge in price.
Binance has announced that it will now support Berachain (BERA), a layer-1 blockchain that mirrors Ethereum Virtual Machine (EVM) and utilizes a proof-of-liquidity (PoL) consensus mechanism.
“Binance is pleased to announce the addition of Berachain to various services including Binance Simple Earn, ‘Buy Crypto,’ Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures.”
The PoL consensus mechanism differs from traditional proof-of-stake (PoS) by rewarding validators for providing liquidity to the blockchain ecosystem.
According to Berachain’s official website,
“Proof-of-Liquidity fundamentally alters the structure of L1 economics, placing emphasis on users and applications over validator rewards. Incentives are directed towards enhancing ecosystem liquidity, promoting efficient trading, price stability, chain security, and network/user growth. PoL aligns the incentives of network participants and contributes to the long-term health of the chain.”
As a result of this announcement, the price of BERA soared from a low of $7.85 on February 5th to a peak of $14.83 the following day, marking an 89% increase. BERA has since corrected and is currently trading at $9.22.
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Image Source: Midjourney
