Plasma, a startup crafting a blockchain designed for stablecoins, successfully attracted $500 million for its token sale held on Monday, which was significantly above its initial target of $50 million.

• The funding limit was reached in just five minutes, highlighting a keen interest among investors following the recent IPO of Circle, the issuer of USDC.
• Plasma is working on enhancing stablecoin usage on Bitcoin by creating a sidechain that is compatible with the Ethereum Virtual Machine (EVM).

According to data from Arkham Intelligence, the sale’s cap had initially been increased to $250 million before being further elevated to meet overwhelming demand.

Key Insights:

• Over 1,100 wallets joined the sale with a median allocation around $35,000.
• The offering occurred on Sonar, a public token sale platform led by Echo, a fundraising startup steered by investor Cobie.

This robust demand reflects a growing interest in stablecoins—cryptocurrencies pegged to traditional currencies such as the USD—which now have a combined supply exceeding $250 billion. They are increasingly utilized for various finances, including payments and remittances.

At the same time, while Bitcoin (BTC) is the most established blockchain, recent activities around stablecoin transactions take place predominantly on networks like Ethereum, Tron, and Solana. Plasma aims to provide native stablecoin functionality to Bitcoin and tackle challenges like high transaction fees and scalability limits by leveraging Bitcoin’s security.