Recently, I have seen quite a lot of discussions about @Plasma at Binance Square. Watching the fluctuations in the price of XPL makes me feel quite emotional. As an 'outlier' in the scaling track, #Plasma has returned to the public eye. Is it because the technology has reached a tipping point, or is it purely a market cycle?
Is it practical or idealistic?
Honestly, I really appreciate@Plasma this tenacity of not following the trend of Rollup. The current Web3 is too impetuous, everyone is focusing on L2, and the Gas fees remain the same.
XPL insists on following the Plasma path, logically to solve the scenario of 'extremely high frequency, extremely low price'. For example, if you play a blockchain game and have to pay a $0.5 fee just to pick up a coin, then it's definitely not feasible. It aims to bring this cost down to nearly zero, which is a good starting point. But objectively speaking, the difficulty of landing this kind of 'idealism' is extremely high, especially how to balance asset security in extreme situations; this is not only a coding issue but also a trust issue.
A personal view on price trends
Looking at the recent curve of xpl, it has been declining, but this pattern usually comes with strong uncertainty. Personally, I think that the expectations for technology play a major role.
What we fear most in the current market is 'overly high expectations'. If @undefined the upcoming ecosystem deployment cannot keep up with this rally speed, or if those legendary cooperative giants do not show up, the pressure for price correction will be very high. When I see everyone shouting for buys in the square, I actually suggest everyone to be cautious and build positions gradually instead of going all in.
Peel back the shell to see the core
What are we buying when we buy $XPL? Are we buying that 'million-level TPS' number, or the potential for it to support large-scale applications in the future?
Currently, there are plenty of valuable insights under the #plasma topic, but also a lot of fluff. I believe the most objective observation metric is not the current coin price, but rather @undefined how active the developer community is. If there are indeed a large number of developers building on it, then the coin price has solid backing; if not, then it is just a temporary speculative target.
In this circle, slow is fast. xpl has given us a different perspective on scaling compared to the mainstream, which is a good thing. But as investors, while embracing this technological sentiment, we must also protect our pockets, as market money always flows to the most stable and pragmatic projects.
What do you all think? Is the current $XPL undervalued or is it over-drawing future expectations? Regarding the cold thoughts on $XPL : beyond the technological sentiment of Plasma, what should we be paying attention to?