PLUME Price Plummets 4.32% Amid Token Unlock Fears and Market Volatility

Following its listing on Binance, PLUME, a blockchain-based platform aiming to tokenize real-world assets, experienced a dramatic 30% price increase within hours, pushing its value above $0.11 [1]. This surge was accompanied by a sharp rise in trading volume, which exceeded $200 million [1]. However, the momentum quickly reversed as selling pressure mounted, bringing the price down to as low as $0.0865 within a short period [1]. Despite the initial optimism, the token has since continued to decline, reaching $0.0878 by August 17 [3].

The volatility has raised concerns among investors, particularly regarding the large number of locked tokens. Over 70% of PLUME’s supply is currently inaccessible, but 108 million tokens are set to unlock on August 21, with further monthly distributions to follow [1]. This impending release has triggered fears of oversupply, potentially exacerbating downward pressure on the price. In fact, the number of unique PLUME holders has nearly halved since July, indicating a loss of confidence in the project's long-term viability [1].

While some remain optimistic, the market is divided. A bullish voice in the community argues that the Binance listing brought unprecedented trading activity and price surges, calling PLUME a key player in the real-world asset space [1]. Indeed, the platform’s total locked value (TVL) has risen dramatically from $25,000 in April to over $254 million in August, signaling significant adoption [1]. Nonetheless, analysts caution that this growth may not be sustainable without a strong balance between supply and demand [1].

The Binance HODLer Airdrop also played a role in the price dynamics, with the initial announcement pushing the token to a high of $0.102 [2]. However, a technical glitch in the airdrop rollout led to an immediate 2.6% correction [3]. The token continued to face downward pressure, dropping 4.32% by August 17 [3]. Analysts highlight key technical indicators, including a potential reversal zone near $0.085 and a bullish crossover in moving averages [3]. Some forecasts suggest the price could reach $0.097 by the end of August, and rise as high as $0.195 in 2026 if adoption continues [3].

Despite these projections, the token’s future is uncertain. The RWA sector is highly competitive, with projects like Ondo and Centrifuge already establishing strong footholds [3]. Additionally, macroeconomic headwinds and regulatory ambiguity could limit PLUME’s growth. A sustained break below $0.080 may trigger further panic selling, especially if trading volume begins to decline [3]. PLUME must now rely on solidifying its practical applications and maintaining investor engagement to ensure a long-term rebound.

As the token navigates these challenges, the broader market will be watching closely. PLUME’s potential lies in its ability to bridge traditional finance with blockchain, offering a streamlined, low-cost solution for asset tokenization. Whether it can maintain its early momentum or fall into a deeper correction will depend largely on how effectively it can manage its token supply and deliver on its long-term vision. For now, the PLUME story remains one of mixed signals and uncertain outcomes.

Source:

[1] https://coinmarketcap.com/community/articles/68a46bebb1c6d25ff1efd25f/

[2] https://www.onesafe.io/blog/binance-plume-token-listing-market-excitement

[3] https://www.blockchainmagazine.net/plume-coin-slumps-4-is-0-08-the-ground/

[4] https://www.binance.com/en/square/post/28489278881217