Token

Solana

Berachain

Berachain, the hottest topic at Token 2049 in Singapore, could grow into a significant competitor to Solana.
Berachain is branded as a “high-performance” <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/a-beginners-guide-to-understanding-the-layers-of-blockchain-technology" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://cointelegraph.com/learn/a-beginners-guide-to-understanding-the-layers-of-blockchain-technology">layer-1 (L1) blockchain</a>, aiming to turn liquidity into security through its unique proof-of-liquidity (POL) consensus mechanism.
While most investors are preoccupied with altcoins like Ripple’s XRP (<a data-ct-non-breakable="null" href="https://cointelegraph.com/xrp-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">XRP</a>) overtaking Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETH</a>), some suggest that the real competitor could be a new token.
Berachain’s upcoming token (BERA) could be the next major Ether competitor, according to Vance Spencer, the co-founder of Framework Ventures.
Spencer told Cointelegraph during an interview at Token 2049 in Singapore:
<blockquote>
 “Will SOL flip ETH? I mean, XRP flipped ETH in 2017, but really, the question that I have is: Can Berachain flip SOL?”
</blockquote>
<figure><img alt="Can Berachain’s new token challenge Solana and Ether dominance?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019204a0-7706-7850-a64e-34069258ab08">
 <figcaption style="text-align: center;">
 Michael Anderson, co-founder of Framework Ventures, Smokey the Beta, co-founder of Berachain, Token 2049. Source: Cointelegraph
 </figcaption>
</figure>
Solana’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>) price has been in an over five-month downtrend since the beginning of April, falling over 8% during the past 30 days. Analysts are concerned that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/solana-ethereum-sol-price-continues-slump-bitcoin" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Solana could see more downside</a> against Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>), similar to Ether’s recent correction against Bitcoin, which reached its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-40-month-low-bitcoin-bottom" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-40-month-low-bitcoin-bottom">lowest point in over three years</a>.
<figure><img alt="Can Berachain’s new token challenge Solana and Ether dominance?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0192049e-63eb-7304-bcca-d9f844aa1296">
 <figcaption style="text-align: center;">
 SOL/USD, 1-month chart. Source: Cointelegraph
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-lower-fees-vitalik-buterin-token-2049" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Vitalik Buterin sings at Token2049, highlights low L2 fees as ETH milestone</a>
<h2 id="berachain-s-economic-alignment-is-what-markets-are-yearning-for">Berachain’s economic alignment is what markets are yearning for</h2>
The optimistic perspective comes as the industry is waiting for the launch of the Berachain mainnet, planned before the end of 2024.
The upcoming Bera token, currently live on testnet, will serve as the network’s gas token for paying transaction fees and as a staking token to enhance network security.
However, the mainnet launch could bring significant attention to the token, thanks to the Berachain’s economic alignment, explained Spencer:
<blockquote>
 “[The market] is yearning for an aligned ecosystem, and that is the crux of the argument against ETH, as flawed as it is, but I think there are ways to solve that, especially with a fair chain consensus mechanism.”
</blockquote>
Berachain’s POL consensus mechanism could usher in a fully-aligned blockchain ecosystem by diverting some of the profit back to ecosystem participants, added Spencer:
<blockquote>
 “When you stake BERA, you have to direct the liquidity you get towards these primitives. And so all the fees stay in the ecosystem. They all flow to BGT AND BERA holders, and I think that's what the market was yearning for.”
</blockquote>
Spencer’s Framework Venture co-led a $100 million funding round into Berachain at the beginning of April 2024.
<figure><img alt="Can Berachain’s new token challenge Solana and Ether dominance?" name="" src="https://s3.cointelegraph.com/uploads/2024-09/019204a1-75eb-793b-b2af-740940506914">
 <figcaption style="text-align: center;">
 $100 million Berachain funding round. Source: <a data-ct-non-breakable="null" href="https://x.com/hiFramework/status/1778776934840762600" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/hiFramework/status/1778776934840762600">Framework Ventures</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/paypal-venmo-ens-kickstart-mainstream-crypto-payments-adoption" rel="noopener noreferrer nofollow" target="null" text="null" title="null">PayPal and Venmo’s ENS integration likely to boost mainstream crypto adoption</a>
<h2 id="why-are-crypto-investors-so-bearish">Why are crypto investors so bearish?</h2>
Despite the optimistic outlook, Spencer also addressed the general negative, or bearish sentiment, in the crypto space.
According to Spencer, the past six months’ price action in traditional and digital markets is the main reason behind the poor investor sentiment.
He added: 
<blockquote>
 “Every asset class has been in a range for the past six months, and so I think everyone's pretty universally unhappy. Again, SOL and ETH were flat for the past six months and in the past two years as well. There's obviously a big dip in between there.”
</blockquote>
However, other notable market analysts, including Michaël van de Poppe, predict a significant <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-commodities-10-year-commodities-rally-analyst" rel="noopener noreferrer nofollow" target="_blank" text="null" title="https://cointelegraph.com/news/crypto-commodities-10-year-commodities-rally-analyst">rally for both cryptos and commodities</a>, due to the asset classes being “extremely undervalued.” Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/simple-change-save-ethereum-roadmap-to-hell/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Proposed change could save Ethereum from L2 ‘roadmap to hell’</a>

Can Berachain’s new token challenge Solana and Ether dominance?

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