Will the Next Token Unlock Push XPL Down?

The upcoming token unlock for Plasma (XPL) is drawing attention across the crypto market as traders evaluate whether additional supply could pressure prices. 

Data shows that about 88.89 million XPL tokens are scheduled to unlock on February 25, 2026. 

At the time of writing, XPL trades around $0.085 with a market capitalization close to $184 million and daily trading volume above $60 million.

Key takeaways

• Around 88.89 million XPL tokens will enter circulation, representing about 0.89% of total supply.

• Token unlocks can introduce short-term volatility depending on investor behavior.

• Plasma’s long-term fundamentals may offset temporary sell pressure if adoption continues.

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Understanding The Upcoming XPL Token Unlock

Token unlock events are common in crypto projects that distribute supply gradually to investors, teams, and ecosystem funds. 

When locked tokens become tradable, markets often reassess price expectations because circulating supply increases. In Plasma’s case, the scheduled unlock represents a relatively small portion of its 10 billion total supply but still equals millions of dollars in potential liquidity.

Currently, the circulating supply sits at about 2.15 billion XPL while the total supply is significantly higher. 

This means additional unlocks could continue over time as ecosystem incentives, development allocations, and investor distributions are released. 

Markets usually watch whether recipients hold, stake, or sell those tokens.

Read also : Will JUP's Token Unlock Make it More Bearish?

Short-term XPL Price Pressure Scenarios

From a technical perspective, unlock events can create three common outcomes. First, early investors may sell part of their allocation, which can increase supply on exchanges and push prices down. 

Second, the market may already price in the event, meaning little reaction occurs. Third, strong demand can absorb the new supply without major declines.

XPL recently traded between roughly $0.084 and $0.089 in a narrow short-term range. 

This suggests traders are waiting for a catalyst, and the unlock could act as one. If selling increases after the release, price may test lower support levels near the previous market floor.

However, the impact also depends on liquidity and trading volume. With more than $60 million in daily trading activity, the market has some capacity to absorb additional supply without dramatic moves.

Read also : XPL Price Analysis: Will the Token Unlock Bring More Bearish Momentum?

Fundamentals Behind The Plasma Network

Plasma positions itself as a Layer 1 blockchain focused on stablecoin payments and financial accessibility. 

The network supports zero-fee transfers for certain stablecoin transactions and maintains compatibility with Ethereum applications through EVM support. 

This design aims to make digital dollar transfers faster and easier for global users.

The protocol also includes features like a Bitcoin bridge and a consensus system optimized for payment throughput. 

If adoption of stablecoin infrastructure continues to grow, networks built for that purpose may gain attention from developers and fintech applications.

Investors and ecosystem growth may therefore matter more to price direction than the unlock itself. 

Plasma has backing from notable crypto investors and has raised funding to expand the ecosystem, which could help sustain long-term development.

Read also : Aztec Privacy Token Risks: Volatility and Regulation in 2026

Conclusion

Historically, token unlocks do not always trigger price drops. Much depends on market sentiment, liquidity, and whether new tokens are sold immediately. If holders stake or allocate them toward ecosystem initiatives, the effect may be limited.

For XPL, the upcoming release represents less than 1% of total supply, which is relatively modest compared with some crypto unlock events. 

That said, markets tend to react strongly to uncertainty, so short-term volatility remains possible.

FAQ

When is the next XPL token unlock?

The next unlock is scheduled for February 25, 2026.

How many XPL tokens will be released?

Around 88.89 million XPL tokens will enter circulation.

Will the XPL unlock crash the price?

Not necessarily, it depends on selling pressure and demand.

What is XPL used for?

It powers transactions, staking, and validator rewards on Plasma.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.