Plasma (XPL) is a specialized Layer-1 blockchain that continues to struggle for market stability following the recent **$18 million token unlock** that occurred on November 25. The release of 88.88 million XPL tokens, intended for ecosystem growth, contributed to significant selling pressure, causing the token price to drop by over 11% in 24 hours and extending its steep decline since September.
Despite its unique feature of zero-fee USDt transfers and an advanced PlasmaBFT consensus layer, the network’s underlying activity is deteriorating.
On-chain metrics reveal a major contraction: decentralized exchange volume collapsed by 82% and the Total Value Locked (TVL) in stablecoins has sunk by 68% since October, with daily active users dropping sharply. This suggests waning confidence and an exodus of funds that were initially attracted by high speculative farming rewards. Analysts warn that if bearish momentum persists, the price could test support at the $0.15 level. The project must now focus on expanding real-world payment adoption to counter the supply shock and revive confidence.e.
