Plasma XPL Bursts: Could This Signal the Start of the Demise for Tron TRX USD and Justin Sun’s Realm?

For TRX holders, it’s time to express some concern. Prepare to grasp the significant transformations occurring in the multi-billion-dollar stablecoin arena, a domain Tron has been leading for years.

The Plasma mainnet was launched yesterday, gifting over 9,300 XPL tokens for free to contributors, including those who participated with just $1. This classic airdrop was intended to ignite strong buying behavior, which Plasma successfully achieved.

As of this moment, those 9,300 XPL tokens are valued at over $10,000, with the price of XPL USD soaring remarkably. Those who decide to hold could become substantial beneficiaries in the upcoming weeks. For those less inclined to wait, selling may appear to be the more straightforward option, especially considering that XPL is currently enjoying substantial liquidity across various exchanges, including Binance.

Coingecko reports that the XPL USD price is currently stable above $1.20. Following its explosive surge on September 25, its trading market capitalization has surpassed $2.3 billion, elevating Plasma’s status as one of the top cryptocurrencies to consider. Over 18 hours post-launch, Plasma is still a hot topic, with trading volumes consistently rising across major trading platforms. This increase indicates significant interest from investors, even while the wider market faces a downturn.

(Source: Coingecko)

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What Is Plasma, and Why Is XPL USD So Attractive?

Plasma goes beyond being just another layer-1 blockchain; it’s a significant player with robust price floor. Similar to BTC, it operates as a public chain, but unlike more versatile platforms like ETH or Solana, Plasma concentrates on facilitating stablecoins, particularly USDT from Tether.

This emphasis is quite logical. Although Tether Holdings has no direct connection, Plasma enjoys the backing of Bitfinex, whose owners also manage the USDT issuer. Alongside Tether, the leading stablecoin by trading market capitalization, Plasma attracts notable investors like Peter Thiel, a prominent supporter of successful crypto projects, including Riot Mining.

What technically differentiates Plasma is its efficiency-driven design from the ground up. Scalability is inherently integrated, but the true advantage lies in facilitating near-zero-fee USDT transfers using a specialized paymaster system. It made an immediate impact, drawing over $2 billion in commitments shortly after launch. More than 50 Decentralized finance partners, including major players like Aave, Ethena, and Curve, are already up and running on Plasma.

Additionally, in less than 24 hours post-launch, over $1.1 billion in stablecoins have been bridged from ETH and Arbitrum utilizing LayerZero.

(Source: Dune)

If XPL USD appreciates, the anticipated XPL FEAR OF MISSING OUT will likely drive further adoption.

Plasma Distributed database has just launched with no-fee USDT transactions and already has $2B in TVL.

However, there’s a crucial aspect that’s being overlooked…

If you can transfer billions in USDT at no cost, who ultimately benefits and who suffers?

Banks? They become redundant. They can’t match the speed,… pic.twitter.com/xwU7MdSmvN

— Simba (Egide) (@egidesimba) September 25, 2025

In its public sale, each XPL was priced at $0.05, raising $373 million in commitments. Participants earning yield as little as $10 in USDT through Binance Earn’s locked product received at least 9,300 XPL, regardless of their investment size. Currently, XPL’s fully diluted valuation exceeds $12.4 billion, with the token surging more than +100% in the past day.

BREAKING: @PlasmaFDN just airdropped 9,304 $XPL (~$10K) to anyone who deposited anything, even $1. pic.twitter.com/sQuQY4fTZC

— HodlFM Team (@Hodl_fm) September 25, 2025

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Is This an Attack on Tron, the USDT Leader? Will TRX USD Decline?

As Plasma rises, branding itself as “Money 2.0” and focusing solely on USDT transactions, challenges loom over Tron, its greatest competitor.

For years, Tron has reigns as the chief protocol for USDT transfers, processing over +50% of global USDT transactions consistently. Its advantage lies in offering lower fees and superior scalability compared to Ethereum, along with strong platform effects in developing markets.

(Source: TronScan)

However, this situation is set to shift. With indirect price floor from Tether, Plasma possesses the financial strength to confront Tron directly, potentially centralizing USDT activities on its network. On Plasma, USDT transactions incur zero fees. Bridging to Plasma is also free. The likely outcome: a transfer of billions in transaction volume, potentially draining directly from Tron’s earnings.

7/ Plasma adopts a unique approach compared to rival stablecoin layer-1s.

By centering around USDT, Plasma can seize Tether transaction flows from cross-border and retail payments, integrating them alongside trading and settlement processes.

When paired with its distribution advantages, Plasma’s… pic.twitter.com/P7HCfqXdSW

— Delphi Digital (@Delphi_Digital) September 24, 2025

Whether this will mark the downfall of Tron remains uncertain. It’s highly likely that Justin Sun and the Tron crew will respond vigorously. As Plasma encroaches, the pressure mounts on Sun to protect his ecosystem, especially since a significant portion of Tron’s revenue comes from USDT transactions. Any mass withdrawal might leave the network vulnerable.

Currently, Sun has not made any comments regarding Plasma or XPL on X.

Nevertheless, challenges are emerging for TRX, similar to what’s happening with BTC USD. TRX USD has declined nearly -10% from its peak in August but remains resilient above $0.30, a vital base level threshold. If TRX ▲0.16% declines further today, there could be panic selling, further driving a potential drop toward $0.25 in a continuation of a pessimistic trend.

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The post Plasma XPL Explodes: Is This the Beginning of the End for Tron TRX USD and Justin Sun’s Empire? appeared first on 99Bitcoins.