Why Plume Network (PLUME) Crashed After Binance Listing - The Harsh Truth Behind the Hype

Binance listing euphoria turns to dust as PLUME fails to sustain momentum—classic case of buy the rumor, sell the news.

The Initial Surge That Fooled Everyone

PLUME rockets on listing news, hitting absurd valuations before reality sets in. Retail piles in chasing green candles while smart money quietly exits stage left.

Liquidity Vampire Attack

Massive sell walls materialize out of nowhere. Early investors and team allocations dump on retail—because in crypto, your exit liquidity is someone else's entry price.

Zero Fundamental Support

No groundbreaking tech, no killer partnerships, just another L2 solution in a sea of identical projects. The 'build it and they will come' fantasy meets brutal market efficiency.

Market Psychology at Play

FOMO-driven buying exhausts itself within hours. Once the hype cycle completes, there's nothing left but bagholders and cynical traders shorting the dead cat bounce.

Another day, another token proving that exchange listings aren't fundamentals—they're just liquidity events for insiders to cash out. The only thing pumping harder than initial volumes? The subsequent disappointment.

A Short-Lived Rally and Sudden Crash in August

After its Binance listing, Plume soared over 30%, surpassing $0.11. The rally came from community hype and inflows from retail traders. Its 24-hour trading volume exceeded $200 million, a 10x increase compared to previous days.

But according to BeInCrypto data, PLUME quickly went on a roller-coaster ride. Its price dropped sharply to $0.0865 within a short time, causing losses for FOMO traders.

On-chain trading community Evening Trader Group spotted that a large whale wallet sent all its accumulated PLUME to exchanges before Binance announced the listing. This whale realized an actual profit of over $1.66 million from PLUME.

A Binance listing is usually seen as extremely bullish. But this sharp drop reflects profit-taking sentiment from short-term investors.

It highlights investor concerns over PLUME’s tokenomics structure and internal selling pressure.

Pressure From Token Unlock Schedule and Declining Holders

Another key reason PLUME lost momentum is investor fear of its token unlock schedule.

According to CryptoRank, over 70% of PLUME’s supply is still locked. But on August 21, more than 108 million PLUME tokens will unlock. After that, 1.08% of the total supply will unlock every month.

This schedule creates continuous selling pressure. Early investors and token holders may sell to take profits.

Unlocking such a large number of tokens quickly could expand circulating supply, pushing prices lower—especially if market demand isn’t strong enough to absorb the new tokens.

Moreover, TokenTerminal data shows that PLUME’s number of holders surged in July, hitting a peak of 42,000. However, that figure dropped by 50% in August as many investors abandoned the project.

This decline may stem from disappointment after PLUME failed to sustain its early-year rally. It could also reflect risk awareness about the unlock schedule. Losing so many holders in a short time signals fading confidence in the project.

In addition, a JPMorgan report noted that while RWA tokenization has drawn positive forecasts, its real-world performance has lagged expectations. Retail investors still show little interest in this sector in 2025.

Positive Signs to Bet on PLUME

On the positive side, some investors argue that PLUME’s recent trading volume surge—thanks to the Binance listing—may help the project gain more attention.

“PLUME just got listed on Binance today and the volume has been insanely high. Following the announcement, PLUME [volume] saw a 1200% increase in price over the last 2–3 days and this is crazy. Been telling y’all about Plume Network since the launch and should say, it’s a ticking time bomb. Massive potential. Recognised RWA. Coming weeks should be good. Higher,” investor crypto King said.

In addition, RWA.xyz data shows that Plume currently has the largest number of RWA holders compared to other networks, over 191,000, which is even higher than its total token holders.

Furthermore, Plume Network’s total value locked (TVL) reached an all-time high of over $254 million in August. It was only $25,000 in April, meaning it has grown 1,000x. This reflects the network’s expanding applications.

Therefore, even though PLUME’s token price has dropped, Plume Network still has a chance to recover if the project continues to prove its real-world value.