Amid the context of Bitcoin halving echo still affecting volatility, Plasma stands out with a TVL surge of 25% in October to 520 million USD (DefiLlama). Total volume reaches 1.2 billion USD weekly, leading the Bitcoin lending sector with a competitive interest rate of 4-8%. Comparison: Stacks TVL only increased by 12% during the same period, indicating Plasma is gaining market share.
Economic model upgrade: buyback from 30% protocol fees, burn mechanism activated when TVL >500M. Raise total 55 million USD cumulative, partnership with Bitfinex for direct fiat on-ramp into Plasma DEX. Tweet @Plasma 5/11: "Bitfinex listing $XPL! Seamless USD to BTC DeFi. TVL milestone celebrated with 10% extra yield boost."
Analysis: Growth driver from airdrop season 2, allocating 100M $XPL to early users based on points system. The sequencer is transitioning to fraud proofs, reducing risk from 70% centralized down to an expected 30% in Q4. However, there is economic risk if inflation is high from incentives – currently circulating supply is 400M/1B.
The market $XPL light pump 15% this week, key support at 0.001 BTC. Accumulate below support for long-term, but there is a risk of sequencer if the upgrade delay could cause user exodus. Plasma leads the strong Bitcoin L2 narrative.
