XPL (Plasma) fell 7.25% in the last 24 hours.

Gate News Bot news, on October 21, according to CoinMarketCap, as of the time of writing, XPL (Plasma) is currently reported at $0.39, down 7.25% in the last 24 hours, reaching a high of $0.55 and a low of $0.38. The current market capitalization is approximately $701 million.

Plasma is a high-performance first-layer blockchain specifically designed for stablecoins. It aims to provide near-instant, free payments for stablecoins, with institutional-level security. Plasma can process over 1000 transactions per second, with a block time of less than 1 second. The platform supports more than 15 stablecoins and collaborates with over 100 countries, more than 100 currencies, and over 200 payment methods. Plasma is supported by well-known institutions such as Bitfinex, Founders Fund, and Framework.

Important news about XPL recently:

1️⃣ Aave Plasma platform adds PT tokens for USDe and sUSDe The USDe and sUSDe PT tokens under 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 remains 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 continued to fall over the past week, dropping from $0.46 on October 16 to the current $0.39, a decline of 15.22%. The market capitalization has also shrunk from $835 million to $701 million. This ongoing downward trend reflects the market's bearish sentiment towards XPL, possibly 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 attitude towards XPL. A large investor has been continuously increasing their short position in XPL, with a total holding of 10.19 million dollars and an unrealized profit of 2.96 million dollars. In addition, well-known investors like Vida, founder of Equation News, have also publicly stated that they have closed their long positions in XPL. These actions may further affect market sentiment and become one of the driving factors for the fall in XPL prices.

From a technical perspective, the XPL price has been highly volatile recently, and after experiencing a significant fall, it has not yet found stable support. The current price is still quite far from previous highs, and the market may still be looking for a new balance point. 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 an investment advice, and investors should be aware of market volatility risks.