In a recent discussion at the Consensus 2025 event in Toronto, Smokey the Bera, the pseudonymous founder of Berachain, emphasized the importance of creating “decorrelated populations” among users to counteract market reflexivity in the cryptocurrency sector.

Market reflexivity refers to how market sentiments can create self-reinforcing cycles that lead to price fluctuations. According to Smokey, this phenomenon can lead to both price surges and crashes. Berachain’s strategy is to develop partnerships with profitable businesses in the web2 sector, which will not be directly tied to the existing DeFi and crypto markets. This approach aims to enhance liquidity and market stability.

During the panel, Smokey shared the stage with Jason Atkins, highlighting solutions for managing liquidity—how quickly an asset can be traded without affecting its price significantly.

“Reflexivity represents a significant challenge in crypto markets. Creating stable structures can help alleviate this concern,” Smokey mentioned during his talk.

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