XPL, the native token of Plasma, hovered around $0.084 on July 28 after bouncing back from a support level near $0.079. This move followed the release of tokens claimed by eligible US public-sale participants, but it barely shifts the long-term outlook. The bigger question remains whether Plasma’s growing network can handle an influx of new tokens without dragging down prices.
Supply Increases Threaten to Outpace Demand
Plasma’s network activities have grown steadily, especially in stablecoin operations. Data from DeFiLlama shows Plasma holds about $613 million in total value locked and stablecoin liquidity stands close to $882 million. Daily transactions surpass 930,000, yet growth isn’t exactly smooth. Weekly decentralized exchange volume fell 32% to around $20 million, while chain revenue remains low, sitting around $159 per day.
What really threatens XPL’s price is the token unlock schedule. Around 2.69 billion XPL are already circulating out of a 10 billion max supply. On July 28, some portion of a 1 billion public-sale allocation became claimable by US participants, though exact numbers remain undisclosed. The biggest unlock is set for September 25, when roughly 1.67 billion team and investor tokens hit the market. Beyond that, the ecosystem portion releases nearly 89 million tokens monthly until September 2028, and validator rewards could boost supply further if inflation kicks in before 2030.
Technically, XPL remains under pressure. The token fell from highs near $0.11 to about $0.086 recently. Although the bounce from $0.079 brought increased volume and the Relative Strength Index climbed above neutral at 52.21, sellers still dominate. Buyers must clear the $0.085 $0.086 resistance zone convincingly to signal a real recovery.
The future value hinges on plasma’s ability to grow demand as token supply swells. Without sharp adoption increases, XPL faces downward pressure despite short-term rebounds.
This content is informational and not financial advice.
