Plasma XPL Pumps as Crypto Stablecoins Market Cap Hit All-Time High: Stop Shorting the Market

The stablecoin market just set a new record. The total value of cryptocurrencies pegged to the dollar has risen to around $307 billion, the highest on record, even as broader cryptocurrency prices remain erratic.

Plasma (XPL), a new layer-1 network created for stablecoin payments, has also attracted attention.

The token traded between $0.40 and $0.42 on high volume, extending its recovery from last week’s lows. The move adds weight to the market’s growing focus on “stablecoin rails,” a theme driving renewed inflows.

The growth of stablecoins is the strongest backdrop for on-chain liquidity seen in months

DefilLama data shows that the capitalization of stablecoins has increased by 5-6% over the past month, which is an indicator of a constant supply of liquidity.

Plasma is dominating headlines as XPL cryptocurrency surges, analysts predict big altcoin season is imminent as stablecoin market cap hits ATH.

(Source: DefiLlama)

USDT is still the anchor of the industry, with an approximate circulating currency of $181-182 billion, and continues to see large daily trading volumes across all exchanges.

Top crypto analysts say this renewed expansion is important. An increase in stablecoin float often comes before increased spot and derivatives trading activity, suggesting that broader market momentum may be picking up.

X analysts did connected the trend of three main factors driving ETF inflows in the fourth quarter, the expansion of stablecoin supply and expectations of more accommodative monetary policy before the end of the year.

Together, they make for the strongest backdrop for on-chain liquidity seen in months.

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XPL Price Prediction: Is XPL Crypto Forming a Bullish Reversal Pattern After Its Long Downtrend?

Market capitalization





A cryptographic analyst published the 4-hour chart XPL/USDT, showing signs that momentum may be changing.

After sliding from above $1.80 for weeks, the token has now stabilized near $0.40, a level that has become strong support.

So far, a descending trend line from previous highs has blocked any rebound. But recent candlesticks suggest the pressure is easing as XPL squeezes inside a restrictive wedge.

(Source: X)

This pattern often appears before a reversal if buyers manage to break above resistance on strong volume.

At around $0.4178, XPL is near that breakout point. The next resistance is near $0.45, while the support remains firm between $0.36 and $0.40.

Volatility has reduced and sellers appear to be losing momentum, a sign that some traders may be accumulating at the lower range.

If the bulls manage to break out of the upper limit, the chart points towards a potential move towards $1.60, a gain of about 3.8x from current levels. But if the $0.36 low were to fail, the bullish setup would collapse, possibly triggering another bearish leg.

For now, XPL is trading in a decisive zone. A confirmed breakout could mark the start of a recovery phase, while another rejection could extend its broader downtrend in sessions to come.

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