A rival of the popular cryptocurrency Ethereum (ETH) is experiencing a surge in price following its recent support from Binance, the largest crypto exchange platform in the world based on trading volume.
Binance has announced that it will be adding support for Berachain (BERA), a layer-1 blockchain that is identical to Ethereum Virtual Machine (EVM) and utilizes a proof-of-liquidity (PoL) consensus mechanism.
According to Binance, Berachain will be integrated into various services offered by the platform, including Binance Simple Earn, ‘Buy Crypto,’ Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures.
The PoL consensus mechanism of Berachain rewards validators for providing liquidity to the blockchain’s ecosystem, as opposed to the traditional proof-of-stake (PoS) system that incentivizes token staking.
As stated on Berachain’s official website, the Proof-of-Liquidity approach fundamentally changes the economic structure of layer-1 blockchains, placing emphasis on users and applications rather than validator rewards as a baseline.
The network incentives are directed towards enhancing the liquidity of the ecosystem, contributing to efficient trading, price stability, chain security, and network/user growth. The PoL mechanism aligns the interests of network participants, including validators, protocols, and users, and promotes the long-term health of the chain.
The news of BERA’s addition to Binance has caused a significant increase in its price. The digital asset went from a low of $7.85 on February 5th to a peak of $14.83 the following day, representing a gain of 89%. As of the time of writing, BERA has retraced and is currently trading at $9.22.
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