Plasma (XPL): Could On-Chain Growth Make It the Next XRP?

In the ever-evolving crypto landscape, the rise of Plasma (XPL) has sparked a compelling debate: Could this stablecoin-focused blockchain replicate the success of XRP, the trailblazer in cross-border payments? To answer this, we must dissect the on-chain analytics and network adoption metrics of both projects, weighing their strengths, weaknesses, and trajectories.

Plasma's On-Chain Explosion: A New Era for Stablecoin Utility

Plasma's mainnet beta, launched on September 25, 2025, has ignited a frenzy in the DeFi space. According to Financial Content's Plasma Mainnet Beta and XPL, the network injected over $2 billion in stablecoin TVL at launch, positioning it as the 8th largest blockchain by stablecoin liquidity. This rapid liquidity injection was fueled by 100+ DeFi integrations, including heavyweights like Aave and Euler, and a zero-fee transaction model enabled by its PlasmaBFT consensus layer, as highlighted in a Coindoo analysis.

The on-chain data tells an even more dramatic story. Over the past week, Plasma's transaction volume surged by 7,942%, propelling it into the top 10 most active ecosystems, according to the Coindoo analysis. This growth is driven by its EVM compatibility, which allows seamless integration for Ethereum-based projects, and a focus on USD₮ transactions for remittances and small business use cases, as noted in the Financial Content report. Meanwhile, XPL's TVL has soared past $14 billion, with speculative memecoins and staking incentives further amplifying demand, per an Invezz report.

XRP's Mixed Signals: Volume vs. Value

XRP, long celebrated for its high-throughput XRP Ledger, has shown a more fragmented performance. While daily transaction volumes occasionally spike to 2 million, reflecting robust cross-border payment utility, the Coindoo analysis points to unevenness across other metrics. Network growth has stagnated, with XRP's 30-day network growth rate at a lackluster 4,849 and transaction counts hovering near 617K, according to an AMBCrypto analysis. Open interest in XRP derivatives has also declined by 3.34% to $7.33 billion, signaling reduced speculative fervor, as AMBCrypto reports.

Despite a recent surge in wallet creation (peaking at 7,000 daily activations in August), XRP's price remains trapped in a descending channel, failing to break out of a consolidation phase-a discrepancy the Coindoo piece likewise highlights. This disconnect between on-chain activity and price action raises questions about the sustainability of its adoption narrative.

Key Differentiators: Plasma's Edge

1. Zero-Fee Model: Plasma's zero-fee transactions for USD₮ transfers directly target pain points in traditional remittances, where fees often exceed 5%, as explained in the Financial Content report. XRP, while low-cost, still charges micro-fees that may deter mass adoption in fee-sensitive markets.
2. DeFi Integration: Plasma's EVM compatibility and rapid onboarding of DeFi protocols (e.g., Ethena, Aave) create a flywheel effect, attracting liquidity and developers, a trend noted in the Coindoo analysis. XRP's ecosystem, by contrast, remains more centralized around payment use cases.
3. Tokenomics: XPL's multi-functional token design-serving as gas, staking, and validator rewards-creates intrinsic demand. XRP's utility is largely confined to transaction fees and reserves, limiting its on-chain value capture, per the Coindoo analysis.

Risks and Realities

Plasma's meteoric rise is not without risks. The recent drawdowns in stablecoin TVL ($5.28 billion) suggest yield chasers may exit if returns decline, a dynamic covered in the Invezz report. Additionally, the network's focus on stablecoins exposes it to regulatory scrutiny, particularly in jurisdictions tightening oversight on digital dollar alternatives. XRP, meanwhile, benefits from its established role in institutional payments but must navigate legal uncertainties and waning speculative interest, as AMBCrypto observes.

Conclusion: A New Contender or a Fleeting Frenzy?

Plasma's on-chain metrics-particularly its TVL growth, transaction surge, and DeFi integration-mirror XRP's early trajectory as a payments-focused blockchain. However, Plasma's zero-fee model and EVM compatibility position it to capture a broader market, especially in regions where stablecoins are critical for financial inclusion. That said, XRP's entrenched position in cross-border payments and institutional adoption cannot be ignored.

For investors, the key question is whether Plasma can sustain its momentum beyond the initial hype cycle. If the network continues to attract DeFi projects and maintain its focus on low-cost, high-volume transactions, it could indeed follow XRP's path. But as with all crypto narratives, execution-and regulatory clarity-will ultimately determine its fate.