XPL (Plasma) fell 8.93% in the last 24 hours.

Gate News Bot news, on October 16, according to CoinMarketCap, as of the time of writing, XPL (Plasma) is currently priced at $0.46, having fallen 8.93% in the last 24 hours, with a high of $0.76 and a low of $0.31. The current market capitalization is approximately $835 million.

Plasma is a high-performance Layer 1 blockchain designed specifically for stablecoins. It provides near-instant, fee-less payments for stablecoins and features institutional-grade security. Plasma supports over 1,000 transactions per second, with block times of less than 1 second. Currently, more than 15 types of stablecoins are operating on Plasma, with a total deposit scale exceeding $1 billion. Plasma is supported by well-known institutions such as Bitfinex and Founders Fund, aiming to provide stablecoin infrastructure for a new global financial system.

Important news about XPL recently:

1️⃣ The Plasma network's DeFi ecosystem is growing rapidly.

The total locked value (TVL) of Plasma Network's decentralized finance (DeFi) has surpassed that of the Tron Network, reaching $6.372 billion, with a daily increase of up to 17.77%. This significant growth indicates that the Plasma ecosystem is rapidly expanding, attracting a large inflow of funds, providing potential long-term support for XPL. However, in the short term, the price of XPL has still not gained a noticeable boost from this positive factor.

2️⃣ The competition in the stablecoin network intensifies

In the past 24 hours, the Plasma network experienced a large outflow of stablecoins, totaling $996 million. Meanwhile, the inflow of stablecoins on the TRON network was $1.1 billion. This data shows that XPL's position in the stablecoin ecosystem is under challenge, which may affect investor confidence and become one of the important factors for the fall in XPL prices.

3️⃣ The operations of large investors have attracted market attention.

On-chain data shows that a large investor with an address starting with 0x4f7 has been continuously increasing their short position in XPL, with a total position reaching $10.19 million and an unrealized profit of $2.96 million. Additionally, well-known investors such as Vida, the founder of Formula News, have publicly stated that they have closed their long positions in XPL. These actions reflect a cautious attitude among some large funds and well-known investors towards the short-term trend of XPL, which may further impact market sentiment.

From a technical perspective, the price of XPL has been fluctuating sharply recently, and after experiencing a significant fall, it has yet to find stable support. The current price is still far from the previous high point, and the market may still be searching for a new equilibrium. Investors should closely monitor the liquidity trends of stablecoins 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 be aware of market volatility risks.