Plasma's XPL token, which launched on September 25, has seen its valuation drop by 47% from its peak, now trading at $0.87. Initially, the token surged to a $17 billion fully diluted valuation (FDV) shortly after its token generation event (TGE). However, it has since underperformed the broader market, with Bitcoin rising 12% while XPL fell 49%. Plasma founder Paul Faecks has refuted claims of token dumping or involvement by Wintermute in the selloff. The decline is attributed to high liquidity emissions and significant sales by ICO whales. Despite the price drop, Plasma's DeFi ecosystem has expanded, reaching $6.4 billion in total value locked (TVL), with Aave vaults comprising 70% of this value.