Plasma, the new blockchain optimised for stablecoins, has become the centre of attention due to its rapid rise in value locked and a burst of memecoin activity. Launched in late September, the network quickly drew in billions of dollars in deposits and saw its native token, XPL, surge into the top 100 cryptocurrencies by market capitalisation. However, recent whale movements are casting a shadow over its native token’s price prospects. Plasma’s TVL surpasses $14 billion The network’s total value locked (TVL) has surged past $14.238 billion in less than a week, according to DeFiLlama. Plasma Network TVL | Source: DefiLlama Capital has rapidly flowed into the more than 100 integrated DeFi protocols, including Aave, Ethena, Fluid, and Euler, giving Plasma a place among the five largest stablecoin-focused networks. The sheer speed of the growth has surprised even seasoned traders, many of whom have compared it to Solana’s breakout moment in 2021. Notably, Plasma’s infrastructure is designed for fast, low-cost transactions, making it particularly attractive for stablecoin users. The blockchain’s pitch was originally about facilitating cheap transfers of tokens like Tether (USDT), but its open and permissionless design has given rise to an entirely different dynamic. Within days of launch, the blockchain became a fertile ground for speculative tokens and memecoins . Memecoins steal the show The most visible of these experiments is the Trillions token, a memecoin based on the idea that stablecoins could eventually reach a market capitalisation in the trillions of dollars. Trillions surged to a $60 million valuation before collapsing back to around $18 million, but not before making headlines and capturing the imagination of traders. Other coins, such as Bankless, a dog-themed Luna token, and a Pepe clone, also took off on Plasma, with most of them created on the multi-chain launchpad DyorSwap. While the Plasma team has avoided endorsing these projects, the frenzy has undeniably helped drive demand for XPL, which is required to pay network fees. This phenomenon highlights the gap between the project’s official stablecoin-focused roadmap and its community-driven adoption as a speculative playground. XPL price under pressure Despite strong fundamentals, XPL’s price has been under pressure lately. After touching an all-time high of $1.68 on September 28, the token fell by more than 33% and now trades around $1.13. Market data shows that trading volumes remain strong, with more than $2 billion changing hands in 24 hours, but volatility is intense. Technical indicators show mixed signals, with the Relative Strength Index (RSI) recently dipping to oversold territory, hinting at a possible rebound if support at $1.12 holds. According to the market analysis, $1.25 and $1.32 are seen as the near-term resistance levels, although a decisive break below $1.12 could drag the token toward the psychological $1 mark. Presale whale moves stir concern Adding to the unease, a major presale participant has transferred all of their holdings to Binance. According to on-chain data captured on Etherscan , the whale’s address, which deposited $50 million during the presale, moved 54 million XPL tokens worth about $63 million to Binance. Large inflows of this kind often foreshadow selling pressure, and traders are watching closely to see how much of the allocation will hit the market. Such activity underscores the fragility of early-stage projects, where large stakeholders still control significant supplies of tokens. With only 18% of XPL’s total supply unlocked so far, market participants remain sensitive to whale actions that could disrupt price stability. Plasma (XPL) price outlook For now, Plasma continues to attract capital and attention, balancing strong fundamentals against the risks of hype-driven speculation and concentrated token ownership. Its ability to sustain momentum will depend on whether it can expand its stablecoin-focused utility while managing the speculative excesses of the memecoin boom. The coming weeks will be crucial. If Plasma (XPL) can convert its early buzz into lasting adoption, it could cement itself as a serious contender in the stablecoin and DeFi space. But with memecoins driving activity and whales testing the market’s appetite, the path ahead looks volatile. The post Plasma TVL soars past $14B amid memecoin frenzy, XPL faces volatility appeared first on Invezz
