Plasma token has plunged despite the strong performance of its network. Nansen data shows that number of transactions in the network jumped by 5,200% in the last 30 days to over 28.7 million. This growth made it the fastest player in the layer-1 and layer-2 industries.
More data revealed that the number of active addresses also soared, reaching over 878,600. This makes it bigger than other chains like Somnia, Starknet, and Avalanche.
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More data shows that Plasma has become the fifth-biggest chain in terms of total value locked. Its DeFi TVL jumped to over $10 billion, making it only smaller than popular chains like Ethereum, Solana, BSC, and Bitcoin.Plasma has overtaken popular chains like Cardano, Tron, and Suio.
Additionally, Plasma has become a top name in the stablecoin industry, where its total stablecoin market cap has jumped to over $5.28 billion.
Plasma’s growth will likely accelerate after thee network reached a partnership with Chainlink,which is now its official oracle provider.
Therefore, the $XPL price has likely crashed as the airdrop recipients start selling their tokens. This is a common occurrence whenever a new airdrop happens.
$XPL price technical analysis
Plasma price chart | Source: crypto.news
The two-hour chart shows that the Plasma price peaked at $1.6938 after its airdrop. It then plunged and reached a low of $0.8312.
There are signs that the coin has bottomed as it formed a double-bottom pattern at $0.8312. This is one of the most popular bullish reversal patterns in technical analysis.
It has formed a falling wedge pattern, which is also another highly bullish sign. Therefore, the token will likely have a strong bullish breakout, potentially to the psychological point at $1. A drop below the support at $0.8312 will invalidate the bullish view.
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