Plasma's Successful Launch, Revenue Over TVL & the Future of Pump.fun - Ep. 910
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Companies
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Key Quotes
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Topics
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Insights
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Action Items
🎯 Summary
Podcast Episode Summary: Plasma’s Successful Launch, Revenue Over TVL & the Future of Pump.fun - Ep. 910
This 87-minute episode features a three-part special, covering the launch of a new stablecoin blockchain, a fundamental shift in crypto valuation metrics, and a provocative thesis on the financialization of streaming platforms.
1. Focus Area
The episode focuses on three distinct, cutting-edge fronts in the crypto/Web3 space:
- Stablecoin Infrastructure: The launch and strategy of Plasma, a new stablecoin-focused Layer 1 blockchain.
- Crypto Valuation Metrics: A deep dive into why Revenue should supersede Total Value Locked (TVL) as the primary metric for valuing platform blockchains.
- Decentralized Finance (DeFi) Innovation: A look into the potential for financializing social/streaming activities, specifically through the lens of Pump.fun.
2. Key Technical Insights
- Plasma’s Monetization Model: Plasma is designed around low/zero transaction fees (especially for USAT) to compete with traditional payments, forcing the ecosystem to monetize primarily through the application layer—a structural shift from traditional L1 fee capture.
- L1 Revenue Components: For platform blockchains like Solana, true revenue accruing to holders/stakers is derived from the sum of Inflation (Protocol Parameter), Base Fees, and Priority Fees, with priority fees being the highest margin component.
- TVL Gaming: TVL is easily gamed because locking assets is often “free” (or low cost), whereas consistently paying transaction fees (revenue) requires active, recurring utility, making revenue a better indicator of sustained economic activity.
3. Market/Investment Angle
- Plasma’s Competitive Edge: Plasma’s main advantage is being the first mover with a live mainnet among the new wave of stablecoin-focused chains, coupled with deep alignment with Tether’s business development.
- The Stablecoin Race: The episode predicts massive growth in stablecoins, potentially exceeding the Treasury’s $2 trillion projection by 2028, driven by global dollarization efforts and the need for settlement layers (like Plasma) for emerging use cases like security token trading.
- Valuation Evolution: The industry is moving past the “seed stage” metric of TVL (2020 era) toward “Series A/B” metrics like revenue, signaling a maturation toward valuing actual utility capture over mere liquidity depth.
4. Notable Companies/People
- Plasma: The first stablecoin-focused L1 to launch mainnet, aiming to facilitate low-cost USAT transfers and featuring the Plasma One NeoBank app (offering high-yield savings and global spending).
- Tether (USDT/USAT): Highly synergistic with Plasma due to team alignment and the upcoming launch of USAT, a Genius Act-compliant stablecoin for the U.S. market.
- Lily Liu (Solana Foundation President): Championed the argument for Revenue as the “north star metric” over TVL for platform blockchains.
- Seth Gins (Coin Fund): Provided analysis on Plasma’s launch, its successful ICO bootstrapping mechanism (requiring stablecoin deposits), and the geopolitical implications of dollarized savings.
- James Perillo (Figma Capital): Introduced a thesis on financializing social activity, particularly via Pump.fun.
5. Regulatory/Policy Discussion
- The Genius Act: The recent passage of the U.S. stablecoin legislation provides the “rules of the road,” which is crucial for enabling traditional corporate partnerships and driving the onshore adoption of compliant stablecoins like USAT.
- Geopolitical Impact: Blockchains like Plasma facilitate the circumvention of capital controls, enabling citizens in high-inflation countries to dollarize savings and access global yields, accelerating global dollarization trends.
6. Future Implications
The industry is heading toward a bifurcated stablecoin market: Tether/Plasma dominating offshore/global distribution, while USAT competes with Circle/USDC for onshore U.S. enterprise settlement (especially for 24/7 security token trading). Furthermore, the focus on revenue signals a necessary maturation phase where protocols must demonstrate tangible economic value capture for token holders, not just asset lockup.
7. Target Audience
This episode is highly valuable for Crypto Investors, DeFi Strategists, Blockchain Developers, and Financial Analysts focused on infrastructure, stablecoin economics, and token valuation methodologies.
🏢 Companies Mentioned
Sipin Capital
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Crypto Investment Firm
DeFi Llama
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Web3 Infrastructure/Data
Echo
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platform
pump fun
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project
Genesis Digital Assets
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unknown
On Monday
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unknown
The FTX
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unknown
Circle President Heath Tarbert
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unknown
Financial Times
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unknown
At Unchained
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unknown
Chief Executive Paolo Ardueno
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unknown
Cantor Fitzgerald
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unknown
Sipin Capital
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unknown
General Partner
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unknown
Binance Pro
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unknown
💬 Key Insights
"Uncertainty threatens progress on the Clarity Act, legislation that would make the CFTC the lead regulator for spot crypto markets."
"Delay in Quintens' nomination puts Clarity Act at risk."
"The problem lies in how fully diluted valuation (FDV) is calculated, as it often includes tokens that will never circulate. They argue this inflates supply metrics and distorts valuations..."
"Cloudflare has announced plans to launch the NET Dollar, a U.S. dollar-backed stablecoin designed to support transactions in the emerging AI-driven internet."
"Circle considers reversible USDC transactions to attract TradFi."
"Tether... is in talks with investors about raising up to $20 billion in a private placement that could value the company between $500 billion and $600 billion, according to Bloomberg."
📊 Topics
#artificialintelligence
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#investment
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#startup
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🧠 Key Takeaways
🎯 Action Items
participate
investigation