A new player has emerged in the crypto world, and it’s being talked about more and more. Plasma blockchain, created specifically for stablecoins, has already become a noticeable competitor to market leaders from its very first days of operation. In this article, I will explain what Plasma blockchain is, how it differs from other networks, and what opportunities it offers to users.
Key Takeaways
- Plasma instantly broke into the top 5 stablecoin blockchains - in just the first days after launch it captured 2.04% of the global stablecoin liquidity market, securing over $6 billion TVL.
- Explosive demand for XPL - during the token launch, the public sale target of $50 million was oversubscribed more than 7×, with $373 million in applications, and the deposit campaign raised $1 billion in under an hour.
What Is Plasma Blockchain - A Network for Stablecoins?
Plasma is a Layer-1 blockchain with a native token called XPL, fully compatible with the EVM (Ethereum Virtual Machine). The network was launched as a platform for global stablecoin payments - fast, convenient, and fee-free. Today, stablecoins have become the lifeblood of the crypto market: their supply exceeds $250 billion, and monthly transaction volumes reach trillions. Plasma blockchain was built for this scale - and in just the first days after launch, it proved its demand by breaking into the top 5 stablecoin liquidity networks with over $6 billion.
Stablecoins are cryptocurrencies tied to traditional assets, such as the US dollar, euro, or gold. They act as a bridge between regular money and cryptocurrencies, making payments easier and less volatile.
Liquidity distribution chart of stablecoins across different blockchains: Plasma already holds 2.04% of the market with a volume of over $6 billion. Source: DeFiLama.
History of Plasma Blockchain
The idea of Plasma appeared in 2024, when it became clear that stablecoins were the biggest financial innovation since the invention of money. Hundreds of millions of people were already relying on digital dollars as their only way to save, pay, and plan. Today, more than $175 billion in USDT from Tether alone is in circulation, and this token has become the foundation of the new digital economy. But existing blockchains were not ready for such scale: high fees, network congestion, and lack of compatibility created barriers for users.
Plasma was designed as the best stablecoin blockchain - a network where the digital dollar moves at the speed of the internet and without extra fees. Interest in the project confirmed the idea was right: the deposit campaign raised $1 billion in less than an hour, and the public sale of the XPL token, with a goal of $50 million, received $373 million in applications - demand exceeded supply by more than 7 times.
“Stablecoins are Money 2.0 and our mission at Plasma is to distribute them to everyone, everywhere.” - Paul Fax, CEO of Plasma
How Plasma Is Different From Other Blockchains
Why did Plasma blockchain so quickly become one of the leading networks for stablecoins? Let’s look at its key features that make it stand out.
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Built for Stablecoins: Most blockchains were designed as universal platforms for any tokens and apps. Plasma, however, was built from the ground up as a network for global USDT and other stablecoin payments. That’s why it includes special mechanisms like:
— Possibility of free USDT transfers
— Gas fees payable in stablecoins
— Support for private payments -
Zero Fee Transfers: On Ethereum, BNB Chain, or Tron you always need a native token (ETH, BNB, TRX) to pay network fees. In Plasma, USDT transfers can be free. To do this, you just swap your USDT ERC20 or XPL for USDT0 - the Plasma version of the USDT stablecoin. After that, you can freely transfer USDT0, and all transactions will be completely free because the fee is covered from the XPL reserve by a built-in paymaster contract that automatically pays the gas for the user.
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Custom Gas Tokens: Instead of buying XPL or holding it just for fees, Plasma users can pay for any transaction using whitelisted ERC20 tokens like USDT or BTC. This removes the usual headache of having to buy a separate native token only for transaction fees.
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High Performance: Plasma uses an improved PlasmaBFT consensus. It processes transactions in parallel and reaches finality within seconds. For comparison: Ethereum blocks take around 12 seconds, and finality comes even later.
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Native Bitcoin Bridge: To use BTC in DeFi on other networks, it usually has to be “wrapped” into wBTC through centralized custodians. In Plasma, that’s not needed: you can deposit BTC directly and use it in smart contracts - for example, as collateral or for transfers without intermediaries. This means full ownership of your funds and no extra fees.
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EVM Compatibility: Any Ethereum smart contracts and tools work in Plasma “out of the box”. Users can interact with the network using familiar wallets like Gem Wallet - a secure and reliable tool that supports Ethereum and all ERC20 tokens, including stablecoins. This makes it easy to connect assets to Plasma and use them without limits.
XPL - The Native Token of Plasma Blockchain
Every network needs its own “economic backbone”. In Ethereum this role belongs to ETH, in Solana it’s SOL. In Plasma, this role belongs to XPL - the native token of the blockchain that forms the basis of its security. It remains a key element and serves several important functions:
Gas Payment: If a transaction is not covered by the built-in paymaster (for example, when interacting with smart contracts), the fee is paid in XPL.
Staking and Rewards: Validators lock up XPL to validate transactions and receive rewards for securing the network.
Governance: XPL holders can vote on protocol upgrades and propose changes.
Ecosystem Incentives: Part of the tokens is allocated to support developers, launch new applications, and grow the community.
XPL Tokenomics - How Plasma’s Native Token Is Distributed
- Total Supply: 10 billion XPL at launch.
- Distribution: 10% public sale, 40% for ecosystem growth, 25% for the team, and 25% for investors.
- Issuance: Inflation starts at 5% per year and gradually decreases to 3%.
- Fee Burning: Part of the transaction fees is burned (similar to Ethereum’s EIP-1559), which helps reduce inflation.
XPL Allocation: 40% for ecosystem growth, 25% for the team, 25% for investors, and 10% for the public sale. Source: docs.plasma.to
Quick Guide to Getting Started With Plasma Blockchain
I prepared a few simple steps to help you start working with Plasma:
1. Create a Plasma Wallet
To start, I installed a Plasma Wallet in just a minute: no personal data was required - no photo, no video, no passport. Everything was quick and fully private. I saved my seed phrase in a safe place and immediately started working with the Plasma blockchain.
2. Acquire XPL
After installation, the wallet was empty, so I needed to fund it. This can be done in three ways:
- Transfer tokens from an exchange
- Receive XPL from another user by simply sharing your Plasma address QR code
- Purshase XPL directly in the app with a credit card
I chose the last option - fast, convenient, and error-free.
3. Store XPL Securely
After funding, my XPL tokens are safely stored in Gem Wallet - a self-custody open-source wallet that gives full control over assets without third parties.
4. Manage Assets
Plasma Wallet is a multichain solution that supports more than 100 blockchains. Everything is in one place: secure storage of tokens, transfers, staking of popular assets (like BNB, TRON, SUI, INJ), and swaps (BTC to ETH or SOL to BNB and etc.). It’s convenient - no need to switch between different apps.
5. Swap Plasma Tokens
Plasma Wallet has a built-in DEX aggregator with top providers and the best rates. Thanks to this, I can swap XPL for USDT on Plasma and back in just a couple of clicks - fast and without extra steps.
Swap XPL to USDT0 on Plasma blockchain