In 2025, the global DeFi market will see a new round of recovery. Unlike the previous cycle, capital efficiency and ecosystem integration, rather than simply liquidity subsidies, will become key factors in the success of emerging public chains. Against this backdrop, Berachain is gradually demonstrating its unique competitiveness, driven by its Proof of Liquidity (PoL) mechanism and the explosive growth of the stablecoin ecosystem .
1. From PoS to PoL: A Paradigm Shift in Consensus Mechanisms
Traditional PoS models use inflationary rewards to attract staking, but this often fails to correlate with actual capital usage, resulting in low capital efficiency. Berachain's PoL model, on the other hand, ties incentives directly to protocol liquidity, requiring the protocol to attract user funds and create transaction depth in order to receive block rewards.
This design has produced significant industrial-level effects:
Competition between protocols is more efficient , with incentive allocation tied to actual liquidity contribution;
User behavior is incorporated into consensus , and LP decisions directly impact whether the protocol can obtain incentives;
● Capital efficiency forms a closed loop , thereby promoting continuous optimization of capital utilization across the entire chain.
This makes Berachain no longer just a single L1, but more like a capital-driven industrial operating system .
2. Stablecoin: Berachain’s Growth Engine
Under the influence of PoL, stablecoins have become the most important "fuel" in the ecosystem. Among them, USDT0 has performed particularly well:
● Cross-chain friendliness : Bridge-free transfers are achieved through LayerZero’s OFT standard;
● Income assetization : On Berachain, it is used for liquidity mining, staking, and lending, with an annualized yield far higher than stablecoins on traditional chains;
● Role as a capital hub : The supply exceeded US$100 million, and the TVL peak exceeded US$600 million, dominating the total amount of stablecoins on the chain.
This evolutionary path indicates that stablecoins are upgrading from “payment tools” to “income assets” and are gradually becoming the core infrastructure of the Berachain ecosystem.
3. Comparative Perspective: Berachain vs. Other Public Chains
From the perspective of the industry landscape, Berachain's growth rate significantly outperforms its peers:
● TVL growth rate : Reach 50% in Q3 2025, surpassing the global DeFi market’s average growth rate of 41%;
● Capital inflow : Total cross-chain inflow exceeded US$880 million, ranking among the top emerging public chains;
● Ecological scale : More than 400 projects have been deployed, 70 of which are native projects.
Compared to Solana’s TVL growth rate of only 35% during the same period, Berachain performed better in high-capital-efficiency areas such as stablecoins, derivatives protocols, and liquidity hubs.
IV. Future Outlook: Stablecoins as Infrastructure
With the expansion of stablecoins like USDT0 and USD0, Berachain is completing its transition from a "liquidity-driven chain" to a "stablecoin-driven chain." Stablecoins are not only a gateway to liquidity, but also the underlying support for governance, lending, clearing, and cross-border settlement.
This logic means:
● The competition among stablecoins is no longer simply a battle for market share, but a battle to truly become part of the chain-level ecosystem;
● Berachain will continue to take the lead in the new round of DeFi cycle by leveraging the unique advantages of combining PoL with stablecoins.
In terms of capital efficiency, ecological integration, and cross-chain capabilities, Berachain has demonstrated the potential to become the next generation of DeFi's main public chain.
