A rival of top altcoin Ethereum (ETH) is seeing a rise in price after abruptly gaining support from Binance, the world’s largest crypto exchange platform by volume.
In a new announcement, Binance says it will be adding support for Berachain (BERA), an Ethereum Virtual Machine (EVM)-identical layer-1 blockchain that uses a proof-of-liquidity (PoL) consensus mechanism.
“Binance is excited to announce that Berachain will be added to Binance Simple Earn, ‘Buy Crypto,’ Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures.”
A PoL consensus mechanism rewards validators for providing liquidity to a blockchain’s ecosystem rather than a traditional proof-of-stake (PoS) system, which incentivizes staking tokens.
As stated on Berachain’s official webpage,
“Proof-of-Liquidity radically changes the way L1 economics are structured, prioritizing users and applications over validator rewards at baseline.
Network incentives go towards enriching ecosystem liquidity, contributing to efficient trading, price stability, securing the chain, and increasing the network/user growth. PoL strongly align the incentives of network participants (validators, protocols, users) and contributes to the overall long-term health of the chain.”
News of the addition sent BERA flying, as the digital asset went from a February 5th low of $7.85 to a peak of $14.83 a day later, a gain of 89%. BERA has since retraced and is trading for $9.22 at time of writing.
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