Plasma, the stablecoin-focused Layer 1 blockchain, has just notched an impressive milestone: $1 trillion in annualized stablecoin transaction volume. That's a huge win for a network that launched its mainnet beta just a few weeks ago on September 25, 2025. But amid this success, its native token, XPL, tells a different story—one of steady decline since its token generation event (TGE). A recent tweet from Miya Hedge of Street Foundation highlights this disconnect and proposes a bold fix: adopting ERC-S to bridge the gap between network success and token value.

Plasma's Rapid Rise in Stablecoin Transactions

Launched as a high-performance Layer 1 designed for USD payments at scale, Plasma boasts instant transfers, low fees, and full compatibility with the Ethereum Virtual Machine (EVM). According to data from Plasma's transaction volumes dashboard, the network is processing an average daily stablecoin volume of $2.75 billion, leading to that eye-popping $1.01 trillion annualized figure. USDT dominates here, making up over 94% of the volume, with a velocity of 0.17x—meaning the stablecoins are circulating efficiently within the ecosystem.

This surge underscores Plasma's appeal for stablecoin infrastructure, attracting over $2 billion in liquidity right out of the gate. As CoinDesk reported, XPL serves as the gas token for transactions, similar to ETH on Ethereum or SOL on Solana. It's essential for network operations, staking, and governance. Yet, despite the blockchain's booming activity, XPL's price has been on a downward trajectory.

The XPL Token's Downtrend Dilemma

Since its debut, XPL has faced volatility typical of new launches, but the trend has been mostly south. Trading on major exchanges like Binance, the token's price has dropped from initial highs around $1.69 to hovering near $0.46, as shown in recent charts. This decline persists even as the network's utility skyrockets—highlighting a classic issue in crypto: when protocol success doesn't directly translate to token appreciation.

In the tweet, Paul from Plasma quipped, "The first trillion is always the hardest," celebrating the volume milestone. But Miya Hedge responded by pointing out the irony: "Plasma has $1T annualized volume, yet $XPL is on a constant downtrend since TGE." This mismatch stems from a separation between the foundation's achievements and the token's market performance. Investors might be using the network without holding or valuing XPL long-term, leading to sell pressure.

Enter ERC-S: Unifying Equity and Token Value

Miya proposes ERC-S as the remedy. While specifics on ERC-S are emerging, it appears to refer to advanced Ethereum token standards like ERC-3643 or ERC-1400, which are designed for security tokens and real-world asset (RWA) tokenization. These standards enable permissioned tokens that represent equity or shares, ensuring compliance and linking token value directly to underlying assets or company performance.

By "putting XPL on ERC-S," the idea is to transform XPL into a security-like token that captures equity value from the Plasma Foundation. This unification could create "sustainable assets in which people want to invest," as Miya puts it. It addresses the disconnect by tying token holders to real equity gains from network growth, potentially boosting demand and stability. Street Foundation (@StreetFDN) even offered to cover all costs for this transition, estimating it could make XPL "10x as valuable."

Standards like ERC-3643 focus on permissioned tokens for RWA, allowing controlled transfers and regulatory compliance—perfect for blending crypto with traditional finance. If adopted, this could set a precedent for other Layer 1 tokens struggling with similar issues.

What This Means for Meme Tokens and Beyond

While Plasma isn't a traditional meme token, its story resonates in the meme coin space, where hype often outpaces utility. Meme Insider sees this as a lesson in tokenomics: building real value through innovative standards like ERC-S could help meme projects evolve beyond pumps and dumps. For blockchain practitioners, it's a reminder to watch how protocols align incentives between users, developers, and token holders.

As Plasma continues to scale, keep an eye on XPL's price action and any updates on ERC-S adoption. For more on Plasma's tokenomics, check out the official docs. If you're trading XPL, platforms like CoinMarketCap provide live updates and charts.

This tweet sparks an important conversation—could ERC-S be the key to making blockchain tokens more resilient? Only time will tell, but it's moves like this that push the industry forward.