The stablecoin market just set a new record. The total value of dollar-pegged cryptocurrencies has climbed to about $307 billion, the highest on record, even as broader crypto prices remain uneven.
Plasma (XPL), a new layer-1 network built for stablecoin payments, also caught attention.
The token traded between $0.40 and $0.42 on strong volume, extending its recovery from last week’s lows. The move adds weight to the growing market focus on “stablecoin rails,” a theme driving renewed inflows.
Stablecoin Growth Is Strongest Backdrop For On-Chain Liquidity Seen in Months
DefiLlama data shows capitalization in stablecoins increasing by 5-6% over the last month, which is an indicator of a consistent supply of liquidity.
(Source: DefiLlama)
USDT is still the anchor of the industry, with an approximate circulating currency of $181-$182Bn Bn, and continues to record large daily trading volumes across exchanges.
Top crypto analysts say this renewed expansion matters. A rising stablecoin float often comes before higher spot and derivatives trading activity, hinting that broader market momentum could be rebuilding.
Analysts on X have linked the trend to three main drivers heading into Q4 ETF inflows, expanding stablecoin supply, and expectations of easier monetary policy before year-end.
Together, they form the strongest backdrop for on-chain liquidity seen in months.
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XPL Price Prediction: Is XPL Crypto Forming a Bullish Reversal Pattern After Its Long Downtrend?
A crypto analyst posted the XPL/USDT 4-hour chart, which shows signs that momentum may be shifting.
After sliding for weeks from above $1.80, the token has now settled near $0.40 a level that has become strong support.
A descending trendline from earlier highs has capped every rebound so far. But recent candles suggest that pressure is easing as XPL compresses inside a tightening wedge.
(Source: X)
This pattern often appears before a reversal if buyers manage to break above resistance with strong volume.
At around $0.4178, XPL sits close to that breakout point. The next resistance is near $0.45, while support remains firm between $0.36 and $0.40.
Volatility has narrowed, and sellers appear to be losing momentum, a sign that some traders may be accumulating at the lower band.
If bulls push through the upper boundary, the chart points toward a potential move toward $1.60, roughly a 3.8× gain from current levels. But if the $0.36 floor fails, the bullish setup breaks down, likely triggering another leg lower.
For now, XPL trades in a make-or-break zone. A confirmed breakout could mark the start of a recovery phase, while another rejection might extend its broader downtrend in the sessions ahead.
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