A competitor to the popular altcoin Ethereum (ETH) is experiencing an increase in price following the sudden support from Binance, the largest cryptocurrency exchange platform in the world by trading volume.

In a recent announcement, Binance stated that it will be adding support for Berachain (BERA), a layer-1 blockchain that is identical to the Ethereum Virtual Machine (EVM) and utilizes a consensus mechanism called proof-of-liquidity (PoL).

“Binance is pleased to announce the addition of Berachain to various services including Binance Simple Earn, ‘Buy Crypto,’ Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures.”

The PoL consensus mechanism rewards validators for providing liquidity to the blockchain’s ecosystem, as opposed to the traditional proof-of-stake (PoS) system that incentivizes token staking.

As mentioned on Berachain’s official website:

“Proof-of-Liquidity fundamentally changes the economic structure of the layer-1 blockchain, with a focus on prioritizing users and applications instead of validator rewards at the foundation.

The network incentives are directed towards enhancing ecosystem liquidity, contributing to efficient trading, price stability, chain security, and network/user growth. PoL aligns the incentives of network participants (validators, protocols, users) and contributes to the overall long-term stability of the blockchain.”

The news of Binance’s support for Berachain led to a significant surge in the price of BERA. The digital asset went from a low of $7.85 on February 5th to a peak of $14.83 the following day, marking an 89% increase. As of the time of writing, BERA has retraced and is currently trading at $9.22.

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Generated Image: Midjourney