As a Layer 1 blockchain dedicated exclusively to stablecoins, Plasma's native token is $XPL. The project's biggest selling point is zero-fee USDT transfers — which indeed sounds quite innovative. However, after an initial 200% surge upon launch, it immediately plummeted by 85%, with volatility reaching industry standards.

Currently, the numbers look promising: 44 exchanges listed, which sounds lively. But liquidity is actually quite tight, which is a real issue. The token supply structure has hidden risks — out of a total of 10 billion, only 1.98 billion are in circulation, with the rest unlocking monthly, creating selling pressure that will persist until 2028. Imagine how much pressure this long-term release schedule puts on the price.

Backed by capital support from figures like Peter Thiel, the project’s TVL once grew rapidly. Technologically, it is compatible with EVM and connected to Bitcoin cross-chain bridges, showing real effort in infrastructure. The problem is that the application ecosystem is still driven by mining incentives, leading to a severe lack of genuine demand — which is not a sustainable long-term strategy.

Ultimately, Plasma’s prospects depend on two variables: whether the ecosystem applications can truly take off, and how the regulatory environment evolves. The technical framework is in place; now it’s about whether they can develop products that users genuinely need.