Shaunda Devens

Kunal Doshi

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Beyond the near-term sector rotation, one group continues to stand apart on a year-to-date basis: Bitcoin Miners, up 150.32% YTD. That outpaces Crypto Equities at 16.13% and leaves BTC itself, up just 1.05%, far behind.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="843" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=1024&amp;h=1024" alt="" class="wp-image-109114" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-49.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



This miner outperformance reflects a structural shift in how the market values the sector. Previously viewed primarily as leveraged proxies to BTC, miners are now increasingly seen as infrastructure providers controlling scarce, pre-permitted power capacity and high-density data-center real estate that can be monetized via either hash or AI/HPC hosting. This generates approximately 70% more revenue per megawatt than BTC mining, with contracts delivering roughly $149K/MW-month vs. $87K/MW-month from mining at current hashprice levels.



Several miners, including Core Scientific (CORZ), Cipher Mining (CIFR), Iris Energy (IREN), CleanSpark (CLSK), and TeraWulf (WULF), are benefiting from this trend. They&#8217;ve secured multi-year hosting agreements that deliver contracted, dollar-linked cash flows in addition to mining revenues. <img loading="lazy" decoding="async" src="blob:https://cms.blockworks.co/3950e72d-5493-43c2-9e3b-19bcf1f6cfd6" width="572" height="307">



Leadership remains highly concentrated. Heavyweight CLSK, IREN, and WULF have delivered outsized, triple-digit performance YTD, supported by three key competitive advantages:



<ol class="wp-block-list">
<li>Rapid scale-up in efficient exahash and rack capacity.</li>



<li>Cheap, reliable power with secured grid interconnects and clear expansion pathways.</li>



<li>Credible AI/HPC optionality, converting their power-rich campuses into diversified, contracted revenue streams.</li>
</ol>



Conversely, laggards within the sector typically have smaller operating footprints, higher energy costs, weaker balance sheets or limited progress on pivoting infrastructure toward AI/HPC workloads.&nbsp;



— <a href="https://x.com/shaundadevens">Shaunda</a>



<h2 class="wp-block-heading">Plasma has liquidity, but now it needs life</h2>



As Plasma Mainnet approaches its <a href="https://blockworks.co/news/plasma-announces-mainnet-beta">one-month anniversary</a>, it’s a good time to assess whether it has lived up to its reputation as the stablecoin chain. After an explosive start, the price action of XPL has been brutalized. It is down -43% in the past week and -70% from its all-time high.



Despite ranking as the fourth-largest chain by DeFi TVL at $8.42 billion, Plasma’s defining feature should be utility, not deposits. The hallmark of a stablecoin chain is active circulation. Weekly P2P transfer data shows Tron and Solana leading by a wide margin, with each stablecoin dollar turning over roughly twice per week. Plasma and Ethereum lag, suggesting most stablecoins are either parked in farms or left idle.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="563" height="135" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png" alt="" class="wp-image-109111" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=563 563w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-46.png?w=80 80w" sizes="auto, (max-width: 563px) 100vw, 563px" /></figure>



Around 65% of Plasma’s stablecoins are deposited in lending protocols such as Aave, reflecting a farming-heavy ecosystem. Incentives explain the behavior. Roughly $230K in daily rewards are given for lending and $55K for borrowing USDT0 on Aave. While TVL bootstrapping has its place, incentives on stablecoins should ideally fuel usage, not just inflate metrics.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="481" height="161" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png" alt="" class="wp-image-109112" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=481 481w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-47.png?w=80 80w" sizes="auto, (max-width: 481px) 100vw, 481px" /></figure>



This TVL is proving far from sticky. As XPL’s price fell, rewards declined, prompting large withdrawals and loan repayments. With limited real utility, XPL has effectively become a reward token, facing continuous sell pressure from roughly 25% annualized inflation.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="798" height="387" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png" alt="" class="wp-image-109113" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=798 798w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-48.png?w=80 80w" sizes="auto, (max-width: 798px) 100vw, 798px" /></figure>



Plasma’s next phase must move beyond incentives. Unless users begin using USDT0 for payments or unique use cases for stables emerge, it risks losing out to the next yield farm. Still, there are bright spots. Neutrl opens pre-deposits today with $50 million in capital to offer hedged OTC and delta-neutral yield strategies. This gives retail access to institutional-grade products traditionally locked behind OTC desks. If projects like Neutrl gain traction on Plasma and merchant integrations follow, Plasma could still evolve from a yield farm to a functional stablecoin economy.



— <a href="https://x.com/Kunallegendd">Kunal</a>



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Mining

Miners power higher as Plasma’s stablecoin hype fades

Blockworks

Plasma, an L1 designed for stablecoin payments, announced the launch of Plasma One on Monday. Marketed as the first stablecoin-native neobank, Plasma One <a href="https://x.com/PlasmaFDN/status/1970110863215391151">integrates</a> spending, saving, and earning in digital dollars into a single platform. The launch targets users in emerging markets where dollar access is in high demand, <a href="https://www.plasma.to/insights/introducing-plasma-one-the-one-app-for-your-money">offering</a> features such as stablecoin-backed cards, fee-free USDT transfers, and rapid onboarding.



While hundreds of millions already use stablecoins for necessity rather than speculation, adoption has been hampered by fragmented interfaces, reliance on centralized exchanges, and poor localization. Plasma One aims to address these barriers with localized teams, peer-to-peer cash integrations, and borderless card services available in over 150 countries.



&#8220;The dollar is the product, and most of the world is desperate to access it. Stablecoins provide a fundamental, permissionless way to hold and move dollars anywhere,&#8221; said CEO Paul Faecks. &#8220;Plasma One is our answer to the distribution problem as it puts us directly in the hands of people who face financial exclusion.&#8221;



The service also includes up to 10%+ yields on balances and 4% cash back on purchases, positioning it as a vertically integrated offering across infrastructure, tooling, and consumer applications. Plasma will serve as its own first customer to test and scale its payments stack ahead of its mainnet beta launch on Sept. 25.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Banking

Plasma opens stablecoin bank Plasma One for dollar access

Plasma will launch its mainnet beta and native token, XPL, on September 25, positioning itself as the eighth-largest blockchain by stablecoin liquidity from day one.



<a href="https://www.plasma.to/insights/plasma-mainnet-beta-and-xpl">According</a> to the project, more than $2 billion in stablecoins will be active on the network immediately, distributed across over 100 decentralized finance (DeFi) partners, including Aave, Ethena, Fluid and Euler. The rollout also enables users to withdraw USD₮0 through bridged vault deposits, marking the final stage of Plasma’s launch process.



The project’s early campaigns drew substantial liquidity commitments, including $1 billion in deposits within 30 minutes and a $373 million oversubscribed public sale via the Echo platform. Plasma later partnered with Binance Earn to distribute the first onchain USD₮ yield product, which reached its $1 billion cap and became the program’s largest campaign to date.



With mainnet beta, Plasma introduces PlasmaBFT, a consensus layer optimized for stablecoin transactions, and will allow zero-fee USD₮ transfers during its initial rollout. The protocol’s stated mission is to build infrastructure for digital dollar payments, remittances and merchant adoption at a global scale.



XPL, the network’s native token, underpins validator incentives and governance. At launch, 25 million tokens will be distributed to community participants, while 2.5 million will be reserved for the Stablecoin Collective, an educational forum turned adoption hub. US participants in the token sale will face a one-year distribution delay due to securities law considerations.



This is a developing story.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



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