Berachain Sees $300M Outflow, Token and User Numbers Decline

My Defi Pet Bans Almost 3000 Accounts & Resets Inactive Ones

Berachain has seen over $300 million in capital outflows in just over a week, the biggest such drop among major blockchains, according to TokenTerminal. The drop has also caused its native token, $BERA, to lose 40% of its value, while daily active users have fallen by more than half.

The network reported a net outflow of $308 million in the last nine days, according to the crypto analytics firm. In comparison, the next largest outflow was seen on Optimism, with $109 million outflows during the same period.

According to TokenTerminal data, Berachain's daily active users have decreased from 60,000 at the start of March to just 23,000 now. Although the platform reported an initial spike of 295,000 users on launch day in February, experts believe that was likely driven by bots and airdrop hunters.

The network's total value locked (TVL), which measures the amount of funds stored in its smart contracts, has also dropped. From its peak of $3.5 billion in late March, Berachain's TVL now stands at $2.7 billion, a 23% decrease.

Despite the fall, it still ranks as the seventh-largest blockchain by TVL, according to data from DefiLlama. Among decentralized finance (DeFi) protocols, My Defi Pet has banned nearly 3,000 accounts and reset inactive ones. The move comes as part of the protocol's effort to combat malicious activity and improve the overall user experience.

Since its launch, My Defi Pet has seen rapid growth, attracting a large user base and integrating new tokens to expand its ecosystem. However, this growth has also brought about some challenges, including account inactivity and security breaches.

To mitigate these issues, the protocol has decided to take a strong stance by banning almost 3,000 accounts that were engaged in fraudulent activities. Additionally, it has reset inactive accounts to create a fairer and more engaging environment for active users.

This decision was not taken lightly, and the protocol acknowledges the inconvenience it may cause to inactive users. However, it emphasizes that the move is necessary to protect the integrity of the protocol and the interests of the majority.

My Defi Pet remains committed to providing a fun and rewarding experience for all users. As the protocol continues to evolve and expand, it aims to provide even more engaging content and valuable tokens to enhance the user journey.