In the cryptocurrency market, price is the only thing that doesn’t lie. Those who survive here have experienced countless times of making grand promises, projects running off with funds, and people here no longer believe in stories. Now, it has dropped from a peak of 1.7u to about 0.12.$XPL , market confidence has long collapsed and disintegrated. This once-promising project that Tether had high hopes for has gone through a death spiral of plummeting coin prices, excessive unlocking, and collapsing market confidence. How can it break through? Next, let’s first take a look at what exactly happened with #plasma and where the future lies.
1. The Collapse of Paper Prosperity
At the beginning of #plasma's launch, backed by Tether, it raised 72 million yuan and claimed to have ultra-high performance with zero gas fee transactions for advertising. It was indeed a rising star, and the price soared. However, in actual operation, it encountered many problems. For instance, past on-chain data shows that the actual transaction processing speed is far from the official claim of thousands of throughput. What worries holders even more is that @Plasma's code updates are slow, and the project team has not explained the reasons for such slowness to the community, only using various excuses to placate the community, which has led to distrust towards the project team and further triggered token sell-offs.
There are significant issues with the design of the tokens. Although the initial circulating supply is only eighteen percent, the team and investors occupy fifty percent of the total tokens, with only a meager one-year lock-up. In 2026, a large-scale unlocking will occur, and under the current circumstances where the cryptocurrency market severely lacks liquidity, the pressure from this token unlocking will undoubtedly bring panic to the market.
The false prosperity of the ecosystem has not brought real users to the project. For example, the initial airdrop was very generous, and although it created a temporary sensation, very few real users remained; most just claimed and sold immediately. The TVL in cooperation with aave and pendle has also plummeted over time, with almost none left.
II. Future Expectations
Having discussed so many issues, what about the positives? Don't worry, let me explain slowly:
#plasma's core value is that it is a high-performance public chain targeting stablecoins. As a differentiated track public chain, it allows @Plasma not to face the challenges of super giants right away, giving it some buffer time. Moreover, its focus on stablecoins allows it to perform the best and fastest in its small ecosystem. Just like in a martial arts novel, the one with the fastest sword wins; #plasma just happens to have the speed advantage. Additionally, its biggest trump card is the support from Tether. With Tether's backing, #plasma can collaborate with various institutions and, leveraging Tether's absolute leading position in the stablecoin market, launch verifiable on-chain yield products to attract users.
The project team also needs to make some trade-offs. If the price of the coin really falls to the bottom, losing the support of the people means losing everything. Under the large-scale unlocking and selling a few days ago, the price of #plasma also dropped to 0.09. However, in the past few days, it has successfully rebounded somewhat. It can be seen that the project team is not neglecting their duties and is not just focused on dumping tokens; the token price still needs @Plasma to support it. Otherwise, with almost fifty percent of the tokens held by the #plasma project team, it’s likely that no one will dare to hold onto this project.
Summary:
In the cryptocurrency world, are there cryptocurrencies that drop tenfold and then break new highs? Of course there are, but more often they plummet to zero. The drop of #plasma is a judgment from the market, but it is not yet a death sentence. The three data points we need to pay attention to regarding #plasma are: the total #plasma TVL, whether the tokens are empowering, and the large unlocking dates. Investment requires caution. Facing the future super market of stablecoins, I believe #plasma will not give up this opportunity. In a market that does not pay for stories, #plasma needs to prove its true value.
