XPL (Plasma) fell 5.57% in the last 24 hours.

Gate News Bot News, October 23, according to CoinMarketCap data, as of the time of writing, XPL (Plasma) is currently priced at $0.36, having fallen by 5.57% in the last 24 hours, with a high of $0.50 and a low of $0.34. The current market capitalization is approximately $644 million.

Plasma is a high-performance Layer 1 blockchain specifically designed for stablecoins. It offers near-instant, fee-less payments and has institutional-grade security. Plasma supports a transaction processing capability of over 1,000 transactions per second and block times of less than 1 second. Currently, more than 15 stablecoins are operating on Plasma, with a total deposit scale exceeding $1 billion. As the 6th largest stablecoin network, Plasma has established partnerships with over 50 partners, covering more than 100 countries, over 100 currencies, and more than 200 payment methods.

Important news about XPL recently:

1️⃣ Aave Plasma platform adds PT tokens for USDe and sUSDe The USDe and sUSDe PT tokens from Ethena Labs have been launched on the Aave Plasma platform, with a supply limit of $200 million for each token. Given that the borrowing rate for USDT is around 4%, Plasma has now become the best on-chain venue for users to obtain leveraged PT positions through Aave. This development is expected to increase the liquidity and usage of the Plasma network, but it seems to have failed to boost the XPL price in the short term.

2️⃣ XPL price continues to fall, market capitalization shrinks The price of XPL has continuously fallen over the past week, from $0.46 on October 16 to the current $0.36, a drop of 21.74%. The market capitalization has also shrunk from $835 million to $644 million. This ongoing downward trend reflects the market's bearish sentiment towards XPL, which may be related to the overall volatility of the cryptocurrency market and the competitive pressure faced by the Plasma network in the stablecoin ecosystem.

3️⃣ Large investor operations attract market attention On-chain data shows that some large investors are taking a cautious stance on XPL. One large investor has continuously increased their XPL short position, with a total holding of 10.19 million USD and an unrealized profit of 2.96 million USD. In addition, well-known investors such as Vida, the founder of Equation News, have also publicly stated that they have closed their XPL long positions. These actions may further influence market sentiment and become one of the driving factors behind the fall in XPL prices.

From a technical perspective, the XPL price has recently fluctuated dramatically, and after experiencing a significant fall, it has not yet found stable support. The current price is still a considerable distance from the previous high point, and the market may still be seeking a new equilibrium. Investors should closely monitor DeFi activities on the Plasma network, trends in stablecoin liquidity, and the movements of large investors to assess their potential impact on the XPL price.

This message is not intended as investment advice; investors should pay attention to market volatility risks.