In response to circulating rumors, Berachain, a rapidly growing layer-1 blockchain project, has issued a statement to clarify recent speculations regarding a potential 10 million BERA token unlock. The confusion surrounding the unlock had led to a wave of volatility and uncertainty among investors. However, the Berachain Foundation has officially denied these claims, confirming that the tokens in question are part of a planned airdrop set for May 2025.
Rumors and FUD Sparked Market Volatility
Rumors of a 10 million BERA token unlock began to spread after reports surfaced, suggesting that these tokens would be released onto the market in a series of daily unlocks worth over $132 million. Such a large-scale release triggered fears of price manipulation and whale-induced sell-offs. This led to widespread speculation about a potential drop in the value of BERA tokens, exacerbating market volatility.
According to the initial reports, the unlock would account for almost 2% of Berachain’s total supply, fueling fears of a market dump and creating panic selling among investors. The market sentiment was further influenced by increasing concerns over whale manipulation, which often accompanies large token unlocks in the crypto space.
Berachain Foundation Clarifies: Airdrop, Not Unlock
In an attempt to address the growing concerns, Nezha, a spokesperson for the Berachain Foundation, took to Twitter to provide clarity. The foundation confirmed that the 10 million tokens were not part of any immediate unlock schedule. Instead, the tokens are earmarked for an airdrop, specifically targeting users of Boyco, Berachain’s liquidity acquisition marketplace.
According to Tokenomist, the single unlocking amount of more than $5m in the next 7d includes ENA MOVE STIK KAS NEON IOTA, etc., and the linear large unlocking in the next 7d includes SOL WLD TIA DOGE OM TAO AVAX SUI JTO NEAR DOT IP FIL ENS SEI BERA, etc. The total unlocking… pic.twitter.com/lVPXsbn4FN
— Wu Blockchain (@WuBlockchain) March 3, 2025
A Strong Network Amid Growing TVL
Despite the FUD, Berachain’s growth continues unabated. The project’s total value locked (TVL) has surged from $2 billion to nearly $3.5 billion, reflecting significant network expansion. Analysts have praised Berachain’s recovery and ongoing growth, citing impressive increases in daily transactions, now ranging between 1.5 million and 2.5 million.
Berachain’s TVL/FDV ratio of approximately 0.76 highlights its strong position in the crypto space, placing it among the top-performing Layer-1 blockchains. This robust performance has led to a renewed bullish outlook on Berachain’s future, with many predicting that its momentum will continue throughout 2025.
Conclusion
The Berachain Foundation’s swift response to the rumors surrounding the token unlock has helped quell fears of market manipulation and a significant price drop. As the May airdrop draws near, the project’s ongoing expansion, coupled with its healthy TVL and transaction volumes, positions Berachain as one of the most promising Layer-1 projects in the crypto ecosystem.
