Plasma Network has recently created a significant impact in the DeFi landscape by overtaking Base Network in TVL. According to data from DefiLlama shared today by market analyst CoinRank, Plasma Network’s DeFi TVL has surged past $4.947 billion compared to Base’s $4.83 billion. For several months, Base has been closely following the top five DeFi networks (Ethereum, Solana, Bitcoin, BSC, and Tron), showing its critical role in the decentralized finance environment. However, Plasma’s recent surge signals significant shifts in the decentralized ecosystem, indicating a rising tide of competition. The development highlights Plasma’s increasing ability to attract financial applications in its Layer-1 network.
What’s Behind Plasma Network’s Performance?
The success of Plasma Network is attributed to the recent launch of its mainnet (which focuses on stablecoins) and its native token, XPL, last week, September 25. The rollout of the mainnet and native asset marked an important milestone for the protocol that aims to enhance stablecoin payments and link DeFi solutions. The launch attracted immense success as Plasma became the eighth-largest blockchain after investors flocked to the platform and poured over $2 billion worth of digital assets into the network. Since then, the protocol continued drawing in investor funds, causing its TVL to rise.
Plasma Network, a new blockchain from Tether’s sister company Bitfinex, has attracted substantial institutional enthusiasm. Following its mainnet launch, Plasma pulled in liquidity from over 100 DeFi platforms, including Euler, Fluid, Ethena, Aave, Binance, Chainlink, and many others.
Also, the rollout of its native token XPL immensely captured investors’ interest, especially whales who showed confidence in the asset’s capability. The token drew in customers’ funds immediately, rising 54% from $0.82 to $1.26 on the day of its debut. During the same period, the asset’s trading volume surged 17,000%, increasing its market capitalization to $228 million. XPL’s price currently hovers at $1.45.
Plasma Network’s Solution and Comparison with Base
Although Plasma has overtaken Base in TVL, the two protocols differ substantially in terms of their business operations. Base, a Layer-2 network powered by Coinbase, aims to develop a secure, low-cost on-chain ecosystem for DApps and cross-chain connectivity. On the other hand, Plasma is a Layer-1 blockchain that concentrates on stablecoin optimization and aims to be the hub of DeFi applications where stable assets play a crucial role.
