Plasma price eyes rebound as TVL crosses $4.5B

Plasma price has retreated from its recent peak, even as total value locked on the network more than doubled to $5.45 billion.

At the time of writing, Plasma is trading at $1.14, down 13% over the last day and 32% from its peak of $1.68 on Sept. 28. The token’s market capitalization stands at $2.05 billion, with a fully diluted valuation of $11.43 billion.

Despite the price decline, trading activity has stayed high. Plasma’s 24-hour trading volume is $2 billion, up 11.2% from the day before, suggesting that market volatility is attracting more players.

CoinGlass data shows that that while open interest in futures contracts increased marginally by 0.77% to $1.43 billion, derivatives volume decreased by 10.7% to $6.14 billion. This indicates that longer-term positions are remaining stable while short-term speculation has subsided.

DeFi growth outpaces price decline

Plasma’s fundamentals continue to expand rapidly. According to DefiLlama data, the total value locked has increased to $5.45 billion, more than doubling from $2.32 billion as of Sept. 26. The $6 billion stablecoin market capitalization on Plasma indicates high demand for its low-cost, high-throughput infrastructure. 

Though adoption metrics show healthy on-chain usage, decentralized exchange volumes have somewhat cooled, dropping from $351 million on Sept. 26 to $126 million the day before. Plasma’s positioning as a stablecoin-optimized Layer-1 blockchain continues to drive capital inflows despite short-term market corrections.

The protocol’s mainnet went live on Sept. 26, seeding $2 billion TVL across more than 100 DeFi protocols, such as Aave, Ethena, Fluid, and Euler. XPL is listed on major exchanges like Binance, OKX, KuCoin, and Bybit. 

Its ecosystem has been further strengthened by other integrations like Chainlink oracles and liquidity incentives approved by Uniswap governance.

Plasma price technical analysis

Plasma is trading close to $1.14 on the hourly chart, hovering just above the $1.12 immediate support level. Since the peak on Sept. 28, there has been consistent selling pressure, as shown by the price action being confined to the lower half of the Bollinger Bands.

Momentum indicators show mixed signals. The relative strength index, which is near oversold territory at 31.8, suggests that sellers may be exhausted in the short term. The MACD shows a potential buy signal with a narrowing spread between the MACD and signal line, while the ADX points to a strong ongoing trend, favoring volatility. 

The next upward targets are $1.25 and $1.30 if bulls are able to hold the $1.12 level and push above the 20-SMA. A stronger breakout could test the $1.32–$1.35 range.

If current levels are not maintained, declines may speed up. A clear break below $1.12 might lead to a move toward $1.05, and sustained weakness might put the psychological level at $1.00 to the test, at which point buyers would probably regroup.