Layer-1 blockchain Berachain has seen its total value locked (TVL) rise to over $3.26 billion, making it the sixth-largest decentralized finance (DeFi) network. It has surpassed Arbitrum, which holds $2.9 billion, and Base, with $3.24 billion. According to DeFiLlama, Berachain now accounts for 2.98% of the total value locked in DeFi. At the time of writing, its native token, BERA, was trading at $6.75, with a market capitalization of $715 million and a fully diluted valuation of $3.3 billion.

Several DeFi protocols have contributed to Berachain’s rapid growth. Infrared Finance, a liquid staking platform, leads with a TVL of $1.52 billion. Decentralized exchange Kodiak follows with $1.12 billion, while yield farming protocol Concrete holds nearly $800 million. These platforms have played a key role in attracting liquidity and increasing activity on the network.

Ethereum continues to dominate the DeFi space, with $58 billion in TVL, representing 53.4% of the market. Solana ranks second, holding $8 billion and accounting for 7.45%. While Berachain still lags behind these networks, its proof-of-liquidity consensus mechanism has drawn attention. This system requires users to stake BERA tokens and direct liquidity toward core DeFi applications, ensuring fees remain within the network and reinforcing long-term engagement.

Earlier this month, the Bera Foundation conducted one of the largest airdrops in crypto history, distributing 80 million BERA tokens to eligible users. The tokens were valued at $632 million, contributing to the increased interest in the network.

Vance Spencer, co-founder of Framework Ventures, which co-led a $100 million Series B funding round for Berachain, has said the blockchain could potentially become a major competitor to Ethereum. He has previously described its liquidity model as one that keeps transaction fees circulating within the network, potentially strengthening its long-term sustainability.

The rise of Berachain comes at a time when DeFi is recovering from major fluctuations. Deposits in decentralized finance surged from $17.3 billion in January 2021 to nearly $178 billion by the end of the same year. However, TVL dropped below $40 billion in December 2022. Berachain’s growth is part of a broader resurgence, with DeFi’s TVL across blockchains now reaching $60 billion, the highest level since August 2022.

Investors and industry participants are watching closely to see whether Berachain can sustain its momentum and challenge more established networks in the coming months.