Berachain [BERA] had a notably impressive performance over the past week, recording a 24% rally.

Berachain [BERA] had a notably impressive performance over the past week, recording a 24% rally. However, the trend reversed in the past 24 hours as the asset began to decline, losing 2.18%.

This pullback coincides with worsening sentiment and fading liquidity—two factors that continue to weigh heavily on BERA’s price trajectory.

LIQUIDITY OUTFLOWS REMAIN HIGH

There has been a notable surge in the amount of liquidity withdrawn from Berachain and its protocols.

As a result, Berachain witnessed one of its most significant sell-offs.

During this period, TVL dropped 22%, falling from $2.099 billion to $1.634 billion, indicating that $465 million worth of BERA has been sold.

This level of capital flight often reflects declining trust, especially when paired with falling participation across protocols.

Moreover, Bridged Netflow recorded a $75 million outflow. Funds moved out of Berachain hint at reduced developer deployment and waning cross-chain interest.

BERA LOSES A SIGNIFICANT PORTION OF INVESTORS

BERA’s investor base shrank dramatically, as Daily Active Addresses dropped sharply.

So far, over 18,600 investors have exited, with Active Addresses falling from 55,900 on the 7th of May to 37,600.

However, not all remaining users have gone quiet. Daily Transactions still hover around 1.5 million, signaling persistent short-term activity.

That said, the ongoing price decline suggests this cohort is gradually reducing exposure to BERA.

If this trend of investors exiting or significantly cutting holdings continues, the price could face sustained downward pressure.

ACTIVITY AND DEMAND REMAIN LOW

The lack of market interest in BERA is evident in the drop in Stablecoin Inflows and DEX Trading Volume.

In the past 7 days, Stablecoin Inflows into Berachain fell 36.32%, declining to $322.38 million. This sharp drop confirms weakening demand and reduced on-chain activity within the ecosystem.

On top of that, DEX Volume has tumbled to $66.2 million—a notable low for the protocol.

Low DEX trading activity indicates minimal interaction and usage and that many investors have likely sold and exited the market.

If these activity levels continue to decline, BERA’s price is likely to suffer further, potentially reaching new lows.