The performance of the native token XPL of the Plasma public chain has been quite painful since its launch. It has been declining from last year's high points and is now repeatedly testing the 0.11 to 0.12 range, with a drop of nearly 10 times. Behind the seemingly calm consolidation, there are actually several unavoidable issues.

The first wave of pressure came from early-stage VC institutions. When the new coin first launched, there was ample buying interest, and these institutions took the opportunity to accumulate at high levels. Now, their arbitrage sell-offs have caused continuous downward pressure. Meanwhile, Plasma set a very large airdrop quota, and this abundance of free tokens has flooded the market with cheap sell orders, leaving buyers unable to find a foothold.

Deeper issues stem from the overall environment of the crypto space. Although the global economic situation looks good, this wave of benefits mainly flowed into traditional assets like non-ferrous metals and energy, while the crypto market hasn't seen corresponding capital inflows. The altcoin rally has yet to start, the wealth creation effect for new users is missing, and without new entrants, there are no buyers to absorb the sell-offs, causing prices to keep falling.

Honestly, the current situation is just about enduring. Although bottom consolidation is uncomfortable, the altcoin cycle will come eventually, and that's when there will be a chance to turn things around. Until then, all we can do is wait.