On February 24, 2025, the cryptocurrency community witnessed a significant breakthrough: the total value locked (TVL) of the Berachain blockchain reached $3.26 billion.
This figure allowed the network to outperform such well-known competitors as Arbitrum ($2.9 billion) and Base ($3.24 billion) and rank sixth among the largest networks in the field of decentralized finance (DeFi). This development underscores the rapid growth of Berachain and its growing popularity in the cryptocurrency world. In this news article, we will analyze what TVL means, why it is important, and how Berachain managed to achieve such success.
What is TVL and why is it important?
TVL, or total blocked value, is a key indicator in the world of decentralized finance that reflects the total amount of cryptocurrency assets "blocked" in smart contracts of a particular blockchain network or protocol.
These assets may include tokens, stablecoins, or other digital assets that users have contributed to DeFi protocols to participate in transactions such as staking (raising tokens to support the network), providing liquidity (adding assets to the pool for trading), or lending. TVL is measured in US dollars and is an important indicator of the health and popularity of an ecosystem.
A high TVL indicates user confidence in the network, as well as its ability to raise capital. The more assets that are blocked, the more liquidity is available for trading, lending, or other financial transactions, which in turn can increase profitability for ecosystem participants. For investors and developers, TVL is a kind of success marker, as it shows how actively the network is used.
Berachain: A new star among blockchains
Berachain is a relatively young Layer-1 network that is rapidly gaining momentum in the DeFi space. Unlike Layer-2 networks, such as Arbitrum or Base, which run on top of the main blockchain (e.g., Ethereum), Layer-1 networks are independent blockchains with their own infrastructure and consensus mechanism. Berachain is distinguished by its unique approach to the economic model, in particular through its Proof-of-Liquidity consensus mechanism, which encourages users to channel liquidity into key ecosystem protocols while keeping transaction fees within the network.
Among the leading Berachain protocols that contribute to the growth of TVL are the following:
- Infrared Finance - a liquid staking platform with a TVL of $1.52 billion;
- Kodiak - a decentralized exchange (DEX) with a blocked value of $1.12 billion;
- Concrete - protocol for yield farming, which holds about $800 million.
These projects demonstrate the diversity of financial opportunities available on the network and are driving its rapid growth.
How Berachain outperformed Arbitrum and Base
Berachain's achievement of $3.26 billion TVL came as a surprise to many, as Arbitrum and Base are already well-known platforms with established reputations.
Arbitrum, a Layer-2 network on Ethereum, has a TVL of $2.9 billion and has long been a leader in scalability solutions. Base, created by Coinbase as another Layer-2 network, has reached $3.24 billion TVL thanks to its integration with a popular exchange and user-friendliness. However, Berachain managed to surpass both of them.
This success can be explained by several factors:
- Rapid growth of the ecosystem: Berachain was launched only in early February 2025, but has already managed to attract attention thanks to its aggressive liquidity raising strategy. For example, on February 6, the Bera Foundation held one of the largest airdrops in the history of cryptocurrencies, distributing 80 million BERA tokens worth $632 million among active users.
- Innovative consensus: The Proof-of-Liquidity mechanism encourages users to invest BERA tokens in staking and channel liquidity to internal protocols, creating a closed-loop economy with high efficiency.
- Support for investors: The network has received significant investments, including $100 million in a Series B round of funding from Framework Ventures, which has added credibility to the project.
What it means for the DeFi sector
As of February 24, 2025, Berachain holds 2.98% of the total TVL in the DeFi space, which this month reached a record $60 billion - the highest level since August 2022.
However, Ethereum remains the leader with a TVL of $58 billion (53.4% of the market), followed by Solana with $8 billion (7.45%). Berachain, ranked sixth, demonstrates the potential for further growth and can become a serious competitor for the top networks.
Experts, including Vance Spencer from Framework Ventures, believe that Berachain has a chance to challenge even Ethereum due to its unique model.
"When you steak BERA, you channel liquidity into the key protocols, and all the fees remain in the ecosystem," he told Cointelegraph.
Berachain's surpassing of the $3.26 billion TVL mark and ranking sixth among DeFi networks is not just a statistical record, but also evidence of the rapid development of new technologies in the crypto industry. This event emphasizes the growing competition among blockchains and may spur further innovation in the sector.
While Ethereum and Solana remain unattainable giants, Berachain proves that even a newcomer can change the rules of the game.
In the coming months, the network is likely to remain the focus of attention for investors and users looking for new opportunities in the world of decentralized finance.
