Plasma Raises $500 Million in Minutes

Plasma Raises $500 Million in Minutes

According to Decrypt, Plasma attracted $500 million in stablecoin deposits (primarily USDT, USDC, and USDS) to its Ethereum network vault in just a few minutes on the morning of June 9, 2025. The fundraising far exceeded its initial $50 million target, with more than 1,100 participating wallets and an average deposit of around $35,000.

Notably, one trader spent 39.15 ETH (around $100,000) on priority fees to secure 10 million USDC into the vault before it was full, showing how fierce the competition is.

Plasma, an Ethereum Virtual Machine (EVM)-compatible Bitcoin sidechain, is designed to optimize stablecoin transactions with near-zero fees, leveraging Bitcoin's security as a settlement layer. The project, backed by Tether, Bitfinex, and prominent investors such as Peter Thiel, plans to sell 10% of the XPL token supply (1 billion tokens) at a fully diluted valuation (FDV) of $500 million, or $0.05 per token.

The Return of ICOs and the Stablecoin Craze

Plasma's event comes as the cryptocurrency market is seeing strong interest in stablecoins.

With a total stablecoin market capitalization of over $220 billion, Tether's USDT accounts for 64% ($153 billion), followed by Circle's USDC at $61.5 billion. Stablecoins have become the backbone of the crypto industry, supporting transactions on centralized and decentralized exchanges, as well as DeFi applications. In 2024, stablecoin trading volume will reach $27.6 trillion, surpassing the combined trading volume of Visa and Mastercard.

Plasma's success is also fueled by the return of the ICO model, which was at the heart of the 2017 crypto craze but declined due to failed projects and regulatory scrutiny.

With Echo’s Sonar platform – founded by renowned trader Cobie (Jordan Fish) – Plasma uses a “fair ICO” mechanism with KYC/AML measures and fair allocation, helping to reduce risks and increase investor confidence.

Evaluation and Conclusion

Plasma’s $500 million raise in minutes demonstrates the strong appeal of stablecoins and the return of the ICO model in a more mature crypto market. With backing from Tether, Bitfinex, and other high-profile investors, Plasma has the potential to reshape how stablecoins are used, especially in payments and DeFi. However, the project will need to overcome regulatory, competitive, and transparency challenges to maintain its momentum.

This event is a reminder that the crypto market is entering a new phase where stablecoins and specialized blockchains can lead the way. Investors should be cautious but also should not ignore the opportunities presented by projects like Plasma. Is this the beginning of a crypto “supercycle”? Stay tuned!

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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