XPL News: Token Drops a Further 13% as Hype Fades
Plasma’s XPL token has crashed 80% since its peak due to low network activity and waning investor sentiment.Summary
Plasma’s XPL token, initially touted as the “blockchain for stablecoins,” has experienced a significant decline, plummeting from a high of $1.67 to $0.31. Despite raising $74 million in funding, the token has lost over 80% of its value since its September debut, with a recent 13.6% drop in the last 24 hours causing $8 million in liquidations. Concerns arose from allegations that the Plasma team engaged in market manipulation to profit from the token's decline, which were denied by founder Paul Faecks. While the blockchain aims for high throughput and zero-fee transfers, current on-chain metrics show low transaction activity (14.9 TPS) and its primary use case is currently a lending protocol. The future of XPL hinges on the planned staking feature in Q1 2026 and increased demand, but its relevance remains questionable given the already low transaction fees.
(Source：CoinDesk)