TLDR
- XPL token surged 113% to $1.54 after its mainnet launch crash on September 25.
- Plasma’s ecosystem, backed by major investors, saw rapid TVL of $3.4 billion.
- Aave deployed on Plasma, generating $57,000 in interest within 24 hours.
- XPL token’s recovery follows pressure from users liquidating airdropped tokens.
XPL Token Surges 113% Following Launch Day Crash
Plasma’s XPL token experienced a significant surge of 113% to $1.54 after its initial drop following the September 25 mainnet launch. The token’s price dipped sharply from $0.93 to $0.7218 on the day of launch, likely due to selling pressure from users liquidating airdropped tokens. However, the token quickly recovered, reflecting the resilience of Plasma’s ecosystem.
The price rebound was driven by strong metrics from the Plasma network, which is known for its focus on stablecoins. Plasma’s blockchain platform is backed by high-profile investors such as Bitfinex, Framework Ventures, and Founders Fund. These strong fundamentals provided the foundation for the recovery.
Selling Pressure from Airdropped Tokens
One of the main reasons for the initial crash in XPL’s price was the sell-off triggered by users who received airdropped tokens. Reports indicate that users received a minimum of 9,304 XPL tokens through the network’s airdrop distribution. This resulted in immediate supply pressure as recipients sold their tokens for other assets. The increase in sell orders caused the token’s value to drop shortly after its launch.
Once the sell pressure subsided, XPL’s price began to recover, driven by increasing demand from traders recognizing the token’s potential. By the time of the recovery, XPL was trading at $1.26, indicating a marked improvement from its lowest point.
Plasma Network’s Strong Fundamentals Support the Surge
Plasma’s recovery was significantly supported by its strong network fundamentals. Within just 24 hours of the launch, the total value locked (TVL) on the Plasma blockchain surged to $3.4 billion. This rapid accumulation of TVL is a clear indication of the liquidity and yield opportunities available on the network.
The Plasma network also saw a considerable amount of decentralized exchange (DEX) volume, crossing $226 million on September 26. This was coupled with a stablecoin market cap of nearly $4 billion, further reinforcing the network’s robustness. These metrics suggest that Plasma is well-positioned to grow and maintain investor interest.
Early Adoption and Strong Traction Contribute to XPL’s Price Rebound
The rebound in XPL’s price also reflects early traction from projects like Aave, which deployed on the Plasma network shortly after launch. According to data, Aave generated $57,000 in interest within just 24 hours of going live on Plasma. This performance exceeded what Aave had achieved on other blockchain networks like Scroll and Gnosis, where similar activities took weeks or even months to generate comparable results.
Aave’s strong performance on Plasma not only demonstrated the platform’s capabilities but also highlighted the growing adoption of the network. As more projects look to Plasma for its stablecoin features and EVM compatibility, the XPL token is gaining recognition among investors and traders alike.
Plasma’s early success in attracting significant liquidity and high-profile projects provides further validation of the ecosystem’s potential. Despite the initial volatility of the XPL token, the underlying fundamentals suggest that the token could maintain its momentum in the coming weeks. The strong recovery, particularly in a week when the overall crypto market saw a decline of 9%, underscores XPL’s resilience and investor confidence in the Plasma network.
