Cross Chain Profit Hunter
Trenches
Joined May 2022
- Tweets877
- Following932
- Followers181
- Likes2.4K
In my view, the market isn’t pricing $XPL correctly. It should be seen as what it actually is – an L1 – rather than being lumped together with just another stablecoin protocol.
Plasma is currently the most compelling L1 for stablecoin farming. $XPL serves as the gas token, and the fact that $USDT transfers are free on this network makes it comparable to $TRX. From what I understand, Tron’s main use case has long been USDT transfers. Of course, Tron benefits from stronger brand recognition because it’s been around for much longer, but with Paolo and the Tether team behind Plasma, there’s enough reach and distribution to compete.
Looking purely at market cap, $XPL sits at around $2B compared to $TRX’s $30B – leaving quite a gap.
I also believe Plasma could become an attractive environment for trenching. The network is fast, transactions are inexpensive, and the abundance of stablecoins will provide liquidity for projects to grow. At the moment, the activity is mostly limited to memecoins, but once a solid DEX becomes available, I expect more ambitious projects to launch there.
If Plasma gains traction as a project-launching platform, that further reinforces the case for valuing it as an L1. Ideally, the Plasma Foundation would also provide direct support to new projects building on the network.
SEND IT
20x just like 6minutes after migrating
Follow me so you dont miss any calls🫵
xitter.cf/25bent3/status/1847322…
