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Plasma
1.87%
Plasma
XPL
Price
$0.1975
1.87% /24h
Volume in 24 hours
$102.13 million
Price 7d
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launched in late September 2025 as a new layer 1 blockchain specifically designed for stable payments. With the support of Peter Thiel, Tether and Bitfinex, it started off strong. In two weeks, the chain held over $6.3 billion in stablecoins and reached a total value locked (TVL) close to $8.4 billion. The native token XPL was trading above $1.50 at its peak. But now it seems like all the hype has just…disappeared.
By the way, what happened here, in one week, the supply of stablecoins on Plasma increased from 5 billion to 1.4 billion. pic.twitter.com/9mcsqEZWxn
– ieaturfood (@ieaturfoods) November 23, 2025
Six weeks later, the picture is very different. As of November 23, 2025, XPL was trading at nearly $0.20, down more than 85% from its peak. Stablecoin supply on the network increased from $6.3 billion to $1.78 billion, and the overall TVL stands at $2.7 billion.
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Why early yield farming couldn’t save crypto XPL
Most of the initial growth came from yield farming. Around 65% of stablecoins on Plasma have been deposited into lending protocols to earn XPL rewards. When the price of XPL began to fall, these rewards lost a lot of value in dollar terms. Users began cashing out their stablecoins and moving them to other chains, leading to a constant outflow that still persists today.
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Additional pressure comes from the token supply schedule. New XPL tokens are regularly distributed to early investors and the team. This continued increase in circulating supply, combined with a decline in demand, has driven the price down almost every week. $18.13 million worth of XPL tokens are expected to be released next week, representing the largest release yet.
The number of daily transactions on Plasma remains high, but most stablecoins that remain on-chain are still parked in lending pools rather than being used for payments or transfers. Without more concrete use cases, many observers expect outbound flows to continue.
(Source: Coingecko)
If XPL hits around $0.224 or $0.23, we could see a short squeeze, where people betting against the token will be forced to buy it back to cover their positions, which could push the price higher.
In short, Plasma attracted a large amount of capital very quickly thanks to high farming rewards. Once these rewards lost value and new tokens continued to enter the market, users began to leave.
The project now needs stronger daily usage of its stablecoin features to stop the decline and rebuild trust.
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Key takeaways
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The 85% crash in XPL stems from the removal of yield farming incentives, decreasing stable coin liquidity, and a major $18.13 million token unlock that is putting pressure on prices.
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Unless real-world usage of the stablecoin grows, Plasma is likely to continue its outflows, although a move towards $0.224 – $0.23 could trigger a near-term rebound.
The post Plasma (XPL Crypto) loses 85% of its value in six weeks: what happened? appeared first on 99Bitcoins.
