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Stablecoin blockchain Plasma token quickly rose to $2.5 billion in market cap after the Tether partnership.<\/p>\n
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Stablecoin infrastructure is capturing significant attention among traders. On Friday, September 26, Plasma\u2019s XPL token reached $2.5 billion in market cap, just a day after launch, breaking into the top 50 largest coins. Currently trading at $1.19, the stablecoin-focused XPL is benefiting from the hype around stablecoins and its association with Tether.<\/p>\n
Plasma positions itself as a \u201cmoney chain,\u201d enabling sub-second finality and low costs for stablecoin transfers, a growing use case in crypto. At the same time, the project has already attracted billions<\/a> in stablecoin liquidity through partnerships with projects like Aave, Ethena, Fluid, and Euler. What is more, the network reached $3.89 billion in stablecoin market cap just one day afterlaunch.<\/p>\n Still, the low fees are also a source of risk for the token, especially given its high valuation. Notably, on its first day of trading, total network fees were just $4,200, making a $2 billion valuation hard to justify on economics alone.<\/p>\n <\/p>\n A likely factor in XPL\u2019s quick growth is speculation about its potential links to Tether, the world\u2019s largest stablecoin issuer. For this reason, Tether, which did not launch its own stablecoin-focused blockchain, may come to rely on Plasma for cheap and fast stablecoin transfers.<\/p>\n For one, Tether entered a partnership with Plasma, providing it with $2 billion in USD\u20ae liquidity. Tether also integrated its omnichain stablecoin XAU\u20ae with Plasma, making it available for trading at launch time.<\/p>\nMarkets speculate about Plasma\u2019s links to Tether<\/h2>\n