As a Layer 1 public chain focused on stablecoin payments, Plasma(XPL) has made a name for itself among many emerging blockchains with its unique positioning. Just a few months after the mainnet beta testing, TVL has surpassed the $2 billion mark. Zero-fee transfers combined with deep integration with Bitcoin make these features quite hardcore. However, to truly participate in this ecosystem, one must think through the logic and risks thoroughly.

**Why can Plasma stand out**

It didn't follow the traditional universal chain path but chose a more focused approach—stablecoin payments + Bitcoin security. After the mainnet officially launched in September 2025, through the trust-minimized BTC cross-chain bridge, users can convert BTC into pBTC, allowing Bitcoin to directly participate in DeFi and smart contract ecosystems. This addresses the long-standing lack of applications in the BTC ecosystem. Plus, with EVM compatibility, applications from Ethereum can directly migrate over, naturally speeding up ecosystem expansion.

**How to participate more intelligently**

XPL staking uses a PoS mechanism, with an initial annual inflation rate set around 5%. Ordinary investors don't need to run their own nodes; just delegate to a reliable validator node to earn rewards. Here's a good detail—if delegation errors occur, at most rewards are deducted, and the principal won't be penalized. Regarding application scenarios, priority should be given to cross-border transfers and high-frequency small payments. The demand for zero-fee USDT transfers in emerging markets remains strong. On-chain transactions in Web3 games can also leverage this chain's high TPS advantage.

**Two pitfalls to be cautious of**

First is market volatility. Since launch, XPL has experienced an 85% retracement; such fluctuations in a crypto bear market are not surprising. Second is ecosystem risk—since it's still in early testing stages, technical or operational uncertainties remain. Before heavy investment, consider how much volatility you can withstand.