Berachain price crashed to a record low on Friday as the stablecoins in its ecosystem continued their recent plunge. The BERA token fell to a low of $3.27, down by over 64% from its highest point this year. Its market cap has plunged from almost $1 billion to $357 million.
Stablecoin Market Cap Plunges on Berachain
Berachain price crashed in a high-volume environment, a sign that many holders have started selling their tokens. CoinMarketCap data shows that the 24-hour volume jumped by 115% to $80 million.
One of the top reasons for the sell-off is that the amount of stablecoins in the network plunged to $578 million, their lowest level since February. The figure has dropped from a record high of over $1.38 billion.
Stablecoins are cryptocurrencies pegged to fiat currencies like the US dollar. They are an essential part of a blockchain because they are the currencies used to settle transactions. As such, the falling trend is a sign that activity in Berachain’s network has waned.
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More data shows that the volume of assets handled by DEX networks on Berachain has continued falling in the past few weeks. After peaking at $157 million earlier, the figure has dropped to $62 million.
The total value locked on the Berachain network has continued falling, moving from over $6.5 billion earlier this month to $5.3 billion. Infrared Finance’s assets have fallen by 28% in the last 30 days to $1.42 billion, while Dolomite has dropped by 17%.
A top concern among Berachain holders is the upcoming unlocking of tokens. The network will unlock 10 million tokens worth $32 million in May. After that, its next big unlock will happen in February when 63.2 million tokens will come online. This will be followed by monthly releases of 13.28 million.
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Berachain Price Analysis
The four-hour chart shows that the BERA price has been in a freefall in the past few months as it plunged from a high of $9.16 in March to an all-time low of $3.172. It has moved below all moving averages, a sign that bears remain in control.
The coin is also attempting to move below the all-time low of $3.172. Dropping below that level will invalidate the double-bottom pattern that has been forming. The Average Directional Index (ADX) has jumped to 30, a sign that the bearish momentum is continuing.
Therefore, the Berachain price will likely continue falling as sellers target the next key support at $3. A drop below that support will point to more downside to $2.5.
