Plasma’s $1B Deposit Cap Fills in 30 Minutes, What’s Behind the XPL Token Frenzy

Plasma has once again captured attention across the crypto market after doubling its stablecoin deposit cap to $1 billion, only to see that cap maxed out in under 30 minutes.

The move came after the project’s initial $500 million deposit round was filled in under an hour earlier this week. In response to feedback from users who felt bots had overwhelmed the original deposit window, Plasma opened a second opportunity with short notice, hoping to give more real users a chance to participate.

Community-driven strategy and public sale clarification

Plasma clarified in an announcement that while $1 billion has been deposited into its vaults, this does not equate to a billion-dollar raise. The deposits are not part of the token sale itself but instead serve as a mechanism for users to secure the right to participate in the upcoming sale of its native XPL token.

In the announcement, the Plasma team explained,

“All funds will be bridged to the Plasma mainnet beta and remain fully owned by depositors. The public sale of XPL is still ahead, and only $50 million worth of tokens will be sold at a $500 million fully diluted valuation.”

The team emphasized that the decision to reopen deposits was partly based on community input. Plasma said via X:

"We heard from community members who had trouble joining and felt that snipers and bots had too much time to prepare.”

This second chance was aimed at leveling the playing field for those actively following the project on Discord or with notifications enabled.

Vault composition and ecosystem development

As of the latest on-chain data from Arkham, Plasma's vault holds $588 million in USDC, $395 million in USDT, $16.66 million in USDS, and around $3.38 million in DAI. All these funds will remain under depositor ownership until the XPL token sale begins.

Plasma is an EVM-compatible Bitcoin sidechain with a focus on eliminating transaction fees for stablecoins like Tether’s USDT,. The platform has raised over $23 million in funding to date, including a $3.5 million seed round led by Bitfinex and a $20 million Series A.

The upcoming token sale and mainnet beta launch are expected to play key roles in expanding its ecosystem. Meanwhile, you can check out this blocmates’ guide on Plasma to find out more about the platform and how it works.

Other Related Read/Listens

• What Is Plasma? The Chain Making Stablecoin Transfers Seamless: A blocmates Guide
• U.S. Stablecoin Market Could Top $2 Trillion by 2028, Says Treasury Chief
• French Bank Just Minted a Stablecoin: SocGen’s USDCV Hits Ethereum and Solana