Berachain (BERA) Hits Record Low Amid Plunging Stablecoin Activity and Token Unlock Concerns

Berachain (BERA) Hits Record Low Amid Plunging Stablecoin Activity and Token Unlock Concerns

Berachain’s native token, BERA, extended its dramatic decline this week, tumbling to a new all-time low of $2.95 on Wednesday—marking a staggering 70% drop from its 2024 peak. The token’s downward spiral has coincided with a significant contraction in stablecoin activity across its network, raising fresh concerns about the project’s fundamentals.

Why Is BERA Crashing?

The BERA token has shed more than $620 million in value since its highly anticipated airdrop, with its market cap plummeting from $963 million to around $344 million. Analysts point to several key factors behind the freefall.

First, Berachain’s tokenomics are highly dilutive. According to CoinMarketCap data, only 119.3 million BERA tokens are currently in circulation out of a massive 501.8 million total supply. The situation is poised to worsen, as a wave of token unlocks is set to begin in February 2026—starting with 63.75 million tokens worth over $184 million. Monthly unlocks of approximately 13.28 million tokens ($38.4 million) will follow.

Historically, token unlocks tend to exert downward pressure on prices due to the increased supply, especially in the absence of corresponding demand.

Second, network activity is showing signs of weakness. Data from DeFi Llama reveals that stablecoin holdings on Berachain have fallen sharply to $356 million, down from a peak of $1.34 billion. This drop indicates diminishing liquidity and declining user engagement.

Additional ecosystem metrics reinforce the bearish outlook. Total value locked (TVL) on the Berachain protocol has fallen from a year-to-date high of 2.04 billion BERA tokens to 1.75 billion. Key DeFi players like Kodiak and Infrared Finance have seen outflows over the past month, although some protocols—such as Veda, Concrete, Beraborrow, and SatLayer—have posted double-digit growth.

Impact of the Boyco Vaults Unlock

A major catalyst for the latest downturn was the $2.5 billion unlock of Boyco Vaults on Tuesday. Boyco, a liquidity provisioning initiative designed to bootstrap dApp ecosystems ahead of mainnet launch, had previously attracted massive deposits across ETH and wBTC markets. The unlock event allowed users to claim their BERA tokens and liquidity provider (LP) receipts, sparking a wave of sell-offs.

Technical Analysis: More Downside Ahead?

On the daily chart, BERA remains entrenched in a bearish trend. Since peaking at $9.60 in March, the token has plunged below key support at $4.90—a level last seen in February. It currently trades below all major moving averages, while the Average Directional Index (ADX) indicates a strengthening downtrend. Momentum indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator are both pointing lower.

Given the deteriorating on-chain metrics and the looming token unlock schedule, analysts warn that BERA could face further downside. The next critical support level lies at the psychological $1 mark.