Plasma DeFi Surges to $4B in Deposits on Launch, XPL Soars 30%

Plasma Blockchain Surges to $4B in DeFi Deposits With Zero-Fee USDT Transfers and Soaring Token Rewards

  • Plasma, a blockchain from Bitfinex’s sister company, attracted $4 billion in deposits within 24 hours of launch.
  • Token incentives are fueling rapid growth, with the XPL token rising 30% since debut.
  • Early backers of Plasma have seen returns as high as 2,300%.
  • Plasma now ranks as the eighth-largest blockchain by DeFi deposits.
  • The platform offers zero-fee transfers for USDT and targets users facing unstable local currencies.

Plasma, a new blockchain platform developed by the sister company of Bitfinex, reached over $4 billion in total value locked on its protocols just one day after its launch. The network, which debuted on Thursday, aims to attract users seeking stablecoin payment solutions.

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Data from DefiLlama shows that Plasma has quickly become the eighth-largest blockchain by decentralized finance (DeFi) deposits. Much of the initial growth is driven by token rewards, according to River, the platform’s DeFi lead. “We predicted a good reception at launch, but the feedback from the market and initial success has surpassed even our most optimistic scenario,” River told DL News.

Users can earn XPL, the native token, by depositing digital assets in Plasma’s lending vaults and partner protocols. Partnerships with established Ethereum DeFi services such as Aave, Veda, and Fluid have contributed to increased deposits. River said, “We focused every team towards ensuring the cheapest USDT borrow rate in the market.” USDT is a USD-pegged stablecoin issued by Tether.

Plasma is part of a competitive group of blockchains targeting the stablecoin payments sector. Notable rivals include Tempo, backed by Stripe and Paradigm, and Arc from Circle, the company behind the USDC stablecoin.

According to CEO Paul Faecks, Plasma’s main target is users with unstable local currencies who need accessible stablecoin payment solutions. The blockchain offers zero-fee USDT transfers, a unique feature among its competitors.

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The rapid adoption of Plasma has also led to major gains for XPL holders. The token climbed 30% to $1.20, bringing its fully diluted valuation to nearly $12 billion. Early investors who participated in the project’s public token sale at a $500 million valuation in June saw returns of up to 2,300%. Seed investors from November reportedly realized a 324-fold return. However, only non-U.S. participants and public sale buyers could trade their tokens at launch; U.S. and seed investors face a 12-month lockup, according to Plasma’s policy.

Bitfinex has operated in cryptocurrency since 2012. With several new stablecoin blockchains set to launch, Plasma plans further partnerships and native applications in the coming months, River said.

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