Smokey The Bera Aims to Enhance Berachain's Resistance to Cryptocurrency Market Fluctuations

According to Smokey the Bera, the pseudonymous founder of Berachain, the platform is working towards creating 'decorrelated populations' of users to mitigate the effects of market reflexivity, as stated during CoinDesk's Consensus 2025 event in Toronto. Market reflexivity is a major concern in the realm of decentralized finance and cryptocurrency, referring to the phenomenon where market sentiment becomes a self-reinforcing cycle. When prices rise, they often attract more buyers, creating a positive feedback loop. However, this process can also work in reverse, leading to a sharp decline in prices. To counter this, Berachain plans to support profitable web2 businesses that are uncorrelated with the existing DeFi and crypto markets in the second and third quarters. By doing so, Berachain aims to protect itself against market reflexivity, enabling it to better withstand market volatility and maintain deep liquidity, as explained by Smokey. Smokey was accompanied by Jason Atkins from the market-making firm Auros, and together they discussed various aspects of liquidity, including the ease and speed of buying or selling crypto assets without significantly impacting their price.