The recent market has indeed been a bit bleak, and the XPL project has also experienced quite a bit of fluctuation. Here's a brief overview of the logic behind this coin.

XPL is the Layer1 native token of the Plasma stablecoin, with the main selling point being zero-fee USDT transfers, while also achieving EVM compatibility. It has a Bitcoin anchoring mechanism at the underlying layer to ensure security. It certainly seems to have a lot of potential.

But the problem is also clear—circulating supply is about 1.978 billion tokens, which is not a small amount. More importantly, there will be a large unlock in July 2026, which could lead to significant selling pressure during that period. In the short term, volatility is inevitable; the focus should be on two main aspects: first, the progress of ecosystem application deployment, and second, whether the pace of token unlocks can match the project's development. This type of project tests whether the team can build out the ecosystem within the unlock cycle; otherwise, it risks falling into a vicious cycle.