The Stellar (XLM) price is gaining bullish momentum as recent network-level enhancements and rising ecosystem activity fuel demand. The upcoming Protocol 23 upgrade introduces improvements in smart contract performance and data handling, positioning Stellar to support more complex decentralized applications. Meanwhile, institutional adoption and a notable rise in tokenized asset flows are reinforcing the network’s utility in cross-border payments and DeFi.
These fundamental shifts in infrastructure and use case expansion are driving renewed interest and sustained upward pressure on the XLM price. But the question remains whether the price will reach $ in 2025.
Major Stellar Core Upgrade—Protocol 23
Recently, the Stellar Development Foundation published the v23.0.00rc2, which is the preliminary release of Protocol 23. The upgrade could introduce several technical enhancements, like scalability and developer functionality. A key feature is the parallel execution of the Soboran smart contracts, which boosts transaction throughput and efficiency. The upgrade also implements CAP-67, introducing Unified Assets Events that simplify asset tracking and improve dApp transparency.
Additionally, Protocol 23 enhances the use of Merkle data structures, enabling more efficient data validation. Together, these improvements lay the foundation for more complex and high-performance decentralized applications, making Stellar a strong platform for DeFi, asset tokenization, and enterprise-level blockchain solutions.
Growing DeFi Ecosystem
Stellar was originally built to facilitate fast, low-cost cross-border payments. It is now evolving into a more robust platform supporting DeFi and tokenized real-world assets (RWAs). Several developments are contributing to this shift.
TVL Surge: Over $100M Locked
- As of July, Total Value Locked (TVL) on the Stellar Network has surpassed $100 million, a significant milestone indicating growing confidence and capital deployment.
- This growth is largely driven by Smart contract capabilities enabled by Soroban, Stellar’s custom-built smart contract platform that integrates seamlessly with the core network
- TVL growth has been fueled by tokenised treasuries, stablecoins, and asset-backed tokens launched by institutional partners.
Institutional Adoption Driving Liquidity
- Franklin Templeton has tokenised part of its U.S. Government Money Fund on Stellar, allowing investors to interact with traditional financial products via blockchain rails
- Circle’s USDC has expanded significantly on Stellar, becoming a key medium of exchange for on-chain transactions and remittances
- Other players in the ecosystem include StellarX, Lobstr, and Ultra Stellar, offering decentralized trading, lending, and pooling options.
Interoperability & Asset Tokenisation
- Stellar’s DeFi ecosystem is also benefiting from its focus on interoperability, enabling seamless asset bridging across different chains and real-world applications
- The Network’s anchor model allows regulated financial institutions to tokenize fiat currencies, creating a bridge between traditional finance (TradFi) and Defi.
- This has enabled a steady rise in on-chain activity in the regions where Stellar powers real-time payments and lending applications.
What’s Next for Stellar (XLM) Price? Will it Reach $1 in 2025?
The Stellar price has been on the rise since the past trading day, helping it to break the bearish pattern. With this, the token has officially fulfilled a bullish breakout, which is expected to attract more than 200% gains in the coming days. If this price action validates, the XLM price may eventually form new highs, breaking the current ATH at $0.9381.
As seen in the above chart, the XLM price broke above the bull flag but failed to surpass 0.5 FIB at $0.4037. However, RSI has displayed a steep rise, with the weekly MACD displaying a potential bullish crossover. This was seen during the 2024 breakout, which pushed the price by over 500% from the lows around $0.08 to as high as $0.786. If the Stellar price replicates a similar price action, it may surge past $1, forming a new ATH around $1.54.
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