Plasma’s XPL token posted a 113% recovery to $1.54 within hours of crashing from $0.93 to $0.7218 following its Sept. 25 mainnet launch.
The initial crash likely resulted from selling pressure as users who received network airdrops liquidated their positions.
Overcoming sell pressure
According to reports on X, users received a minimum of 9,304 XPL tokens through the distribution program, creating immediate supply pressure as recipients converted holdings to other assets.
After the selling subsided, XPL found strength for its recovery rally, supported by strong fundamental metrics across the Plasma ecosystem. The token was trading at $1.26 as of press time.
Plasma operates as a stablecoin-focused blockchain platform backed by high-profile investors, including Bitfinex, Framework Ventures, Peter Thiel’s Founders Fund, and Tether CEO Paolo Ardoino.
The project raised $500 million through its token offering in June, attracting over 2,900 wallets with deposits totaling $1 billion during its initial funding phases. It also partnered with EtherFi for a $500 million integration of the liquid staking protocol Ethereum vault.
The network enables zero-fee USDT transfers, supports confidential payments, and provides EVM compatibility for Ethereum-style smart contracts.
Network fundamentals back recovery
Plasma’s total value locked reached $3.4 billion within 24 hours of launch, according to DefiLlama data. The rapid TVL accumulation reflects the high yields offered on the network to attract initial liquidity and establish a user base.
DEX volume on Plasma crossed $226 million on Sept. 26, while the stablecoin market cap on the network climbed to nearly $4 billion.
One example of early traction is Aave’s deployment on the Plasma network. According to Blockworks data analyst Jack Mandin, Aave generated $57,000 in interest within 24 hours on the network, outpacing the protocol’s performance on Scroll and Gnosis over a two-week period.
The lending protocol also produced $6,000 in reserve revenue on day one, exceeding what many smaller Aave deployments achieve across weeks or months. These fundamental metrics likely contributed to XPL’s price recovery as traders recognized the network’s early adoption and liquidity attraction capabilities.
The strong rebound, which comes amid a week where the crypto market shed 9% in value, indicates XPL’s strength among crypto investors. Yet, it remains to be seen if the token can maintain its momentum over the following days.
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