Once hailed as the next big blockchain for stablecoins, Plasma’s XPL faces investor backlash and a sharp decline in network activity.
The cryptocurrency market witnessed a major correction this week as Plasma’s XPL token continued its steep descent, losing over 80% of its value since September. Once trading above $1.67, the token now hovers near $0.31, reflecting fading investor confidence and concerns about the project’s real-world use cases.
Despite claims of 1,000 transactions per second (TPS), recent data shows the Plasma blockchain processing only 14.9 TPS, a figure that has raised doubts about its scalability and adoption. The network’s core activity remains limited to a $676 million lending vault, while broader ecosystem growth has stalled.
According to BitXJournal blockchain analyst , “Plasma launched with strong institutional backing, but early investors appear to have overestimated user demand and underestimated market fatigue.”
The token’s market capitalization has slipped to around $550 million, putting it dangerously close to dropping out of the top 100 cryptocurrencies. Meanwhile, short-term traders have reportedly exited their positions after 13.6% losses in the past 24 hours alone.
“The biggest challenge for Plasma is not technology — it’s trust and utility,” said crypto strategist Maria Lopez. “Investors want to see real adoption before the staking program launches in 2026.”
Analysts note that Plasma’s rapid decline underscores a growing shift in the crypto landscape, where hype-driven launches are giving way to projects with measurable performance and transparent roadmaps.
Until tangible network demand materializes, XPL’s recovery remains uncertain, leaving investors cautious about betting on another rebound in the short term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.