A competitor of the popular altcoin Ethereum (ETH) is experiencing a surge in price after receiving support from Binance, the largest cryptocurrency exchange platform in the world based on 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 proof-of-liquidity (PoL) consensus mechanism.

“Binance is pleased to announce that Berachain will be included in 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 which incentivizes staking tokens.

As mentioned on Berachain’s official website,

“Proof-of-Liquidity fundamentally changes the structure of L1 economics, giving priority to users and applications over validator rewards as a baseline.

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

The news of Binance adding support for BERA caused a sharp increase in its price, with the digital asset rising from a low of $7.85 on February 5th to a peak of $14.83 the following day, resulting in a gain of 89%. As of the time of writing, BERA has retraced and is currently trading at $9.22.

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