XPL, the native token of Layer 1 Plasma, surged with a monumental mainnet launch and airdrop, reaching a $2.4 billion market cap in hours. Backed by Tether's co-founders, it offers fee-less USDT transfers, but a 16% dip to $1.15 tempers excitement. Is it a strategic bet on stablecoins or just hype?
The XPL token, at the heart of the new Layer 1 blockchain Plasma, made a spectacular market entry last week, capturing traders’ attention with volatility reminiscent of Ethereum’s early days. Launched with heavyweight backing from Tether’s co-founders, XPL experienced an explosive price surge before undergoing an equally dramatic correction, leaving the market questioning: is this a mere flash in the pan or a future pillar of the stablecoin ecosystem?
The initial enthusiasm can be explained by a powerful combination of factors. The launch of Plasma’s mainnet, a blockchain specialized for stablecoins promising fee-less transactions, was accompanied by a generous airdrop and direct integration with Tether, the sector’s giant.
This association instantly lent credibility to the project, propelling XPL’s price by more than 58% in the first hours. Analysts view it as an “asymmetric bet” on cryptocurrency’s most robust sector, with XPL serving as both utility and loyalty token within a Tether ecosystem reportedly targeting a stratospheric valuation of $500 billion.
However, after the peak came the fall. XPL’s price has plummeted nearly 16% over the last 24 hours, settling around $1.12. This correction, though severe, isn’t surprising. It results from massive profit-taking by airdrop beneficiaries and the inherent volatility of any new project, however promising. With a market capitalization rapidly reaching over $2 billion, placing XPL at 51st globally, a consolidation phase was expected.
Currently, XPL is retesting a crucial demand zone. A drop below $1 would invalidate a bounce and confirm a potential fall to $0.9-0.8.
In case of a rebound, the resistance and liquidity zone formed between $1.37 and $1.47 will be crucial. This zone could repeatedly push back the price in the coming days. Buying XPL at its current level and taking profits in this zone appears optimal.
A clear breakout above $1.47 would be needed to then envision an increase to $1.8 and beyond.
With expert forecasts up to $3.5, XPL offers a potential return of nearly 3x in the coming months. To benefit from this bull run for the XPL token, here’s a purchase guide to easily obtain it on Bitget:
Why use GetAgent?
GetAgent, Bitget’s AI, simplifies trading for beginners through prompts and automated transactions. For example: “Buy XPL if the price falls below $1.20” – automating orders and stops to protect against downside risk.
In terms of valuation, XPL remains a lightweight compared to other Layer 1 blockchains like Solana (SOL) or Cardano (ADA), but its trading volume, exceeding its own market cap, demonstrates intense speculative and commercial interest. XPL’s true potential lies not in its short-term performance, but in its ability to deeply integrate into the Tether empire. If Plasma becomes the preferred blockchain for USDT transactions, demand for XPL could explode.
Optimistic analysts mention a market cap target of over $6 billion, translating to a token price above $3.50. For now, XPL remains a promise, a high-risk asset whose fate is intimately tied to the expansion of its powerful sponsor.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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