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Plume’s RWA Market Domination vs PLUME’s 60% Plunge: The Crypto Paradox Explained

Plume’s RWA Market Domination vs PLUME’s 60% Plunge: The Crypto Paradox Explained

Author:
Beincrypto
Published:
2025-09-26 07:52:58
7
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Real-world asset tokenization's rising star controls the sector—while its native token bleeds value.

The Contradiction

Plume's infrastructure dominates real-world asset onboarding, yet PLUME tokens trade 60% below previous highs. The protocol secures vineyards, real estate, and fine art—while investors watch charts paint crimson.

Market Mechanics Unpacked

Tokenomics clash with adoption metrics. Institutions flock to Plume's compliance-friendly rails, but speculative traders flee volatile crypto markets. Traditional finance veterans smirk—'another crypto narrative where utility doesn't move needles.'

Regulatory Hurdles

SEC scrutiny over tokenized assets creates investor hesitation. Plume navigates legal gray areas while competitors circle. The space evolves faster than legislation—advantaging pioneers but spooking short-term capital.

Looking Ahead

RWA growth projections remain bullish despite token performance. Either PLUME catches up to platform adoption—or becomes case study number 47 in crypto's 'fundamentals versus price' disconnect. Wall Street watches, amused by decentralized finance's growing pains.

Three Factors Behind Plume’s Success

This dominance has three main reasons. First, unlike traditional financial institutions that often focus on cost efficiency, Plume (PLUME) has chosen a “DeFi-first” approach. According to Tiger Research, the project prioritizes yield and composability within the DeFi ecosystem. Plume’s RWA tokens can be used for lending, liquidity provision, or as collateral.

This convenience and composability quickly attracted the crypto-native community, which is familiar with cycling assets to maximize returns. It is a competitive edge that traditional-style RWA models cannot easily replicate.

Tokenized assets on Plume. Source: Messari

Tokenized assets on Plume. Source: Messari

According to another report from Messari, Plume launched with $65.8 million in tokenized assets, which increased to $170 million by September 15, 2025. Data from rwa.xyz shows 144 tokenized assets on the network, distributed across more than 202,000 addresses. Superstate, Nest, and Mercado Bitcoin deploy the most significant holdings by market share.

DeFi activity on PLUME has also surged since its mainnet launch in June 2025. As of September 15, the Total Value Locked (TVL) reached $577.8 million and $4.9 billion in PLUME.

Plume’s TVL. Source: Messari

Plume’s TVL. Source: Messari

Next, according to Tiger Research, the project has proactively engaged with the SEC, US regulators, and authorities across Asia to establish a more transparent framework and minimize unexpected risks. This approach has been described as a “regulatory moat” — a protective shield and a competitive advantage.

Finally, beyond RWA, Plume has also set its sights on the bitcoin (BTC) market. With an estimated $2.18 trillion in BTC stored but underutilized, the project aims to turn BTC into “programmable capital.”

If successful, this WOULD be a significant breakthrough in unlocking massive capital for DeFi. At the same time, however, it brings technical challenges (smart contract risk, custody) and regulatory hurdles (how authorities classify tokenized Bitcoin products).

The Price of PLUME Being Reflected Accurately?

However, is this success truly being reflected in the price of PLUME? Plume, a Web3 RWA project, prioritizes crypto-native values like yield and accessibility. It creates a new ecosystem while mitigating regulatory risks through proactive policy engagement. Its dual positioning bridges Web3 and traditional finance, driving strong growth potential in the RWA market and BTCFi.

PLUME price performance. Source: BeInCrypto

PLUME price performance. Source: BeInCrypto

However, the price of PLUME does not seem to reflect the project’s growth trajectory. At the time of writing, data from BeInCrypto shows PLUME is trading at $0.0969, about 60% below its all-time high.

As BeInCrypto reported, the price of PLUME spiked more than 30% after its launch on Binance a month earlier. However, the price quickly fell below pre-listing levels due to a wave of whale sell-offs and profit-taking. At the time, investor concerns about the token unlock added to the ongoing selling pressure.

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