Why did the price of XLM go up?

Stellar (XLM) increased by 3.17% in the last 24 hours, outperforming the overall crypto market, which rose by 1.91%. This fits with its upward trend over the past week (+5.91%) but contrasts with a decline over the past month (-11.26%). The main factors behind this movement are:

1. Protocol 23 Upgrade (Positive) – Better scalability and smarter contract performance.
2. Institutional Partnerships (Positive) – Collaboration with Visa and adoption of real-world assets.
3. Technical Breakout (Mixed) – Positive signals from technical indicators but some resistance remains.

Deep Dive

1. Protocol 23 Upgrade (Positive)

Overview:
On September 3, 2025, Stellar launched Protocol 23, which allows smart contracts to run in parallel and reduces delays. This upgrade aims to increase transaction speed to about 5,000 transactions per second (TPS), which is important for decentralized finance (DeFi) and business applications.

What this means:
Better network performance makes Stellar more competitive for cross-border payments and tokenized assets. For example, Franklin Templeton recently tokenized $445 million in U.S. Treasury bonds on Stellar, increasing demand for XLM as a bridge currency.

What to watch:
Look for growth in adoption metrics like Total Value Locked (TVL), which is currently $145 million, up 21% month-over-month.

2. Visa Partnership & Institutional Adoption (Positive)

Overview:
Stellar announced a partnership with Visa on August 9, 2025, integrating its blockchain into Visa’s stablecoin settlement system. At the same time, WisdomTree launched a $99 billion fund on Stellar for tokenizing real-world assets.

What this means:
Institutional interest is growing—wallets holding between 1 and 10 million XLM increased by 37% in the second quarter of 2025. This shows Stellar’s growing role in regulated finance, especially compared to competitors like Ripple (XRP), which is still facing regulatory challenges.

What to watch:
Keep an eye on Visa’s stablecoin transaction volume on Stellar, currently at a record $627 million.

3. Technical Momentum (Mixed)

Overview:
The MACD indicator for XLM turned positive on September 8, signaling upward momentum. However, the RSI indicator is neutral at 46.69, and the price is facing resistance around $0.419, a key technical level.

What this means:
Traders are cautiously optimistic. If XLM can stay above $0.405, it might reach $0.45. But if it fails, the price could drop back to around $0.37, near the 50-day moving average.

Conclusion

Stellar’s recent price increase reflects a combination of network improvements, growing institutional support, and positive technical signals. While Protocol 23 sets the stage for long-term growth, short-term price swings may continue due to resistance levels and profit-taking.

Key watch: Will XLM hold above $0.405 with increasing trading volume, or will overall market trends take control? For the latest on Protocol 23 adoption, check out Stellar’s GitHub.

What could affect the price of XLM?

Stellar’s price is balancing between upcoming technology upgrades and market ups and downs.

1. Protocol 23 Upgrade (Positive) – Better scalability could lead to more users and partners.
2. XRP Connection (Mixed) – Following XRP’s price moves adds momentum but also risk.
3. Regulatory Environment (Neutral) – Meeting global standards might attract big financial players.

In-Depth Look

1. Protocol 23 Upgrade (Positive Impact)

What’s Happening:
Stellar plans to roll out Protocol 23 in the third quarter of 2025. This upgrade will allow smart contracts to run in parallel and increase transaction speed to 5,000 transactions per second (TPS). These improvements could help Stellar compete with platforms like Solana and Ethereum, especially in decentralized finance (DeFi) and tokenizing real-world assets. Big partnerships, such as Visa’s stablecoin integration and Franklin Templeton’s $445 million tokenized treasury, depend on this upgrade working well.

Why It Matters:
Better scalability means more developers and institutions might use Stellar, increasing demand for its token, XLM. Past upgrades, like the Soroban launch in 2024, led to a 78% price increase, showing that such improvements can boost the token’s value.

2. XRP Connection & Altcoin Season (Mixed Impact)

What’s Happening:
Stellar’s price moves closely with XRP, showing a 0.95 correlation over the past 100 days. XRP’s big 460% gain over the past year helped lift Stellar’s price too. However, relying too much on XRP’s success is risky if XRP faces regulatory problems again. At the same time, the Altcoin Season Index, which tracks smaller cryptocurrencies, rose nearly 64% in 30 days, indicating more money is flowing into smaller coins like Stellar.

Why It Matters:
Stellar benefits when XRP does well, but it could suffer if XRP struggles. A strong altcoin season could help Stellar gain more, but Bitcoin still dominates the market at 57.68%, which can limit gains for smaller coins.

3. Regulatory & Market Changes (Neutral Impact)

What’s Happening:
Stellar complies with ISO 20022, a global financial messaging standard, making it appealing for central bank digital currency (CBDC) projects. However, Tether, a major stablecoin, will stop using Stellar in August 2025, reducing liquidity. Also, the European Union’s MiCA regulations add compliance costs for crypto projects.

Why It Matters:
Clearer regulations might bring more institutional investors to Stellar, but differing rules between the U.S. and EU create uncertainty. Currently, XLM’s price at $0.38 is about 60% below its 2025 peak, reflecting cautious optimism.

Conclusion

Stellar’s price will depend on how well Protocol 23 is adopted, XRP’s price movements, and regulatory developments. If Stellar breaks above $0.42, it could reach $0.62 (a key technical level). But if it falls below $0.40, a 15% price drop might follow. Keep an eye on the September 14 mainnet upgrade vote and XRP’s $3.35 resistance level to see if Stellar can forge its own path or stay tied to XRP’s performance.

What are people saying about XLM?

The Stellar (XLM) community is buzzing with hopes of reaching $0.50, while closely watching the upcoming Protocol 23 upgrade, which could be a turning point. Here’s what’s making headlines:

1. Protocol 23 upgrade – Scheduled for Q3 mainnet launch, sparking optimism but also concerns about whether it can handle more users smoothly.
2. $7.20 price target – Trader Peter Brandt predicts a big jump if XLM holds steady above $0.20.
3. Technical tug-of-war – The $0.40 support level is being tested after a rejection at $0.42.

Deep Dive

1. @johnmorganFL: Protocol 23 Hype vs. Reality bullish

"Stellar (XLM) Price Action Signals Potential for Major Upside"
– July 15, 2025, 2:48 PM UTC · 12.4K followers · 38K impressions
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What this means: The upcoming Protocol 23 upgrade, which includes improvements to smart contracts, could encourage more decentralized finance (DeFi) projects to use Stellar. This is a positive sign for XLM’s growth. However, if the upgrade struggles to handle increased activity, it could lead to price drops.

2. @PeterBrandt: $7.20 Long-Term Target bullish

"XLM has surged 100% in Q3...Veteran trader forecasts $7.20 if key support holds"
– July 18, 2025, 11:35 AM UTC · 224K impressions
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What this means: Peter Brandt, a well-known trader, sees a potential 10x increase in XLM’s price if it stays above $0.20. His analysis is based on a chart pattern called a “cup-and-handle” that has been forming since 2021. However, reaching $7.20 would mean Stellar’s market value grows to over $200 billion—about 16 times its current size—which some find unlikely.

3. Technical Trader: $0.40 Battle Zone neutral

"Immediate support at $0.403–0.406; breakdown below 0.402 risks drop to $0.395"
– August 18, 2025, 7:54 AM UTC · 87K impressions
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What this means: The price of XLM is holding steady around $0.40 but faces resistance near $0.42. If it falls below $0.40, it could dip further to about $0.395. Traders are also watching how closely XLM’s price moves with Bitcoin, which has a strong correlation right now.

Conclusion

Overall, the outlook for Stellar (XLM) is cautiously optimistic. The Protocol 23 upgrade could be a game-changer, especially if the community approves the Soroban smart contract improvements in the August 14 governance vote. This could attract big investors—Franklin Templeton already manages $445 million in tokenized assets on Stellar. On the downside, if XLM fails to stay above $0.40, it might drop back toward July’s low of $0.37.

What is the latest news about XLM?

Stellar is making progress with new partnerships and technical improvements, though market reactions are mixed. Here’s a quick summary:

1. Protocol 23 Upgrade Launched (September 3, 2025) – Boosts speed and smart contract capabilities.
2. Visa Expands Stablecoin Use on Stellar (August 11, 2025) – Strengthens Stellar’s role in global payments.
3. XLM Price Shows Potential for Growth (September 8, 2025) – Positive signals but some challenges remain.

In-Depth Look

1. Protocol 23 Upgrade Launched (September 3, 2025)

What Happened:
Stellar rolled out its Protocol 23 upgrade, nicknamed “Whisk,” which brings faster smart contract processing, better event handling, and overall improved performance. This upgrade aims to lower transaction delays and fees, while supporting the tokenization of real-world assets like property or stocks.

Why It Matters:
This upgrade makes Stellar more attractive for decentralized finance (DeFi) projects and businesses by addressing previous speed and cost issues. It could encourage more developers and companies to build on Stellar’s blockchain. (PaulGoldEagle)

2. Visa Expands Stablecoin Use on Stellar (August 11, 2025)

What Happened:
Visa added Stellar to its stablecoin payment system, joining other blockchains like Ethereum and Solana. This means stablecoins such as PayPal’s PYUSD and Circle’s EURC can now be used for cross-border payments on Stellar’s network.

Why It Matters:
This move confirms Stellar’s compliance with financial regulations and its technical reliability. While it hasn’t caused an immediate price jump for XLM, it could lead to wider adoption in regulated financial markets over time. (Visa via StellarOrg)

3. XLM Price Shows Potential for Growth (September 8, 2025)

What Happened:
XLM’s price jumped 87% in early September, reaching $0.54. This rise is linked to positive technical trends and a strong correlation with XRP’s recent rally. Some analysts suggest that if XLM stays above $0.20 and breaks past $1, a bigger price surge could happen.

Why It Matters:
While this price movement is promising, it’s still speculative. There are resistance levels between $0.62 and $0.80, and technical indicators show the market might be overbought, meaning prices could be volatile soon. (Weex)

Summary

Stellar’s recent technical upgrades and partnership with Visa highlight its focus on building a fast, practical blockchain for real-world use. At the same time, the price action around XLM shows growing interest but also some uncertainty. The key question is whether the Protocol 23 improvements will lead to significant growth in Stellar’s ecosystem by the end of 2025.

What is expected in the development of XLM?

Stellar is moving forward with several important updates:

1. Protocol 23 Mainnet Activation (Q3 2025) – Improvements to handle more transactions and support decentralized finance (DeFi) and business applications.
2. Meridian 2025 Summit (Mid-September 2025) – A major event to highlight new partnerships and financial infrastructure developments.
3. Composable Data Platform Launch (Q4 2025) – New tools for developers to access better analytics and network data.
4. Protocol 24 Privacy Features (2026) – Enhanced privacy options using advanced cryptography for secure and confidential transactions.

Deep Dive

1. Protocol 23 Mainnet Activation (Q3 2025)

Overview: The Protocol 23 upgrade, called “Whisk,” was approved in a September 3 vote and brings several key improvements. It allows smart contracts to run in parallel, boosting transaction speed to about 5,000 per second. It also standardizes how events are reported for developers and improves how resources are managed. These changes help Stellar compete better in DeFi and tokenizing real-world assets.

What this means: This is positive news for Stellar (XLM) because better scalability can attract big players like Visa, which is integrating stablecoins, and Franklin Templeton, which has tokenized $446 million in treasury assets. However, there is a risk that businesses might take longer than expected to adopt these upgrades.

2. Meridian 2025 Summit (Mid-September 2025)

Overview: Stellar’s annual Meridian Summit will showcase new partnerships, including updates with companies like MoneyGram and IBM. The event will also introduce new tools for cross-border payroll payments. The goal is to strengthen Stellar’s position in payment systems that follow the ISO 20022 standard, which is widely used in global finance.

What this means: The impact depends on how deep these partnerships go. If Stellar can make real progress in regulated stablecoin corridors, such as pairing Japanese Yen (JPY) with XLM, it could increase network use. But if the event is mostly hype without concrete results, it could cause price swings.

3. Composable Data Platform Launch (Q4 2025)

Overview: The new Composable Data Platform (CDP) 1.0 will offer customizable dashboards, real-time network data, and APIs for businesses. This builds on Stellar’s growth in total value locked (TVL), which reached $122.4 million in 2025. The platform aims to help developers meet compliance requirements with better data access.

What this means: This is good news for Stellar’s long-term usefulness. More transparency and data tools could speed up adoption of tokenized real-world assets. However, some users might find it challenging to integrate these new tools at first.

4. Protocol 24 Privacy Features (2026)

Overview: The upcoming Protocol 24 upgrade will add privacy features like zero-knowledge proofs, which allow transactions to be verified without revealing details, and asset masking to keep holdings confidential. This is part of Stellar’s plan to become a “privacy-ready” blockchain platform.

What this means: If successful, these privacy features could set Stellar apart from competitors like XRP. But there is a risk that regulators might scrutinize these privacy tools because of concerns about anonymity.

Conclusion

Stellar’s roadmap focuses on improving scalability with Protocol 23, encouraging business use through the Meridian 2025 Summit, and increasing transparency with the Composable Data Platform. Privacy upgrades in 2026 add an extra layer of potential. Keep an eye on how total value locked grows after Protocol 23 and what announcements come out of Meridian. The big question is whether Stellar’s mix of compliance and innovation will help it reach its technical price target of $0.86.

What updates are there in the XLM code base?

Stellar’s software is moving forward with preparations for Protocol 23 and updates to its developer tools (SDKs).

1. Soroban RPC Improvements (August 2025) – Added features to track transaction status and simulate advanced authorization.
2. Protocol 23 XDR Upgrade (August 2025) – Backend updates for better scalability and security.
3. Java SDK 2.0.0-beta0 (Upcoming) – Major redesign to simplify contract handling and key management.

In-Depth Look

1. Soroban RPC Improvements (August 2025)

What’s new: Stellar’s smart contract system, Soroban, now includes a pollTransaction function. This lets developers check the status of contract transactions more easily. It also supports simulating transactions with non-root authorization, meaning developers can test complex permission setups without full access.

Why it matters: Developers can retry failed transactions more effectively and test multi-signature setups without needing all permissions. The Java SDK now shows more details about asset movements and contract events, making it easier to track what’s happening on the network.

Impact: This reduces errors in decentralized apps (dApps) and makes it easier to build secure, enterprise-level decentralized finance (DeFi) applications. This is a positive sign for Stellar (XLM) as it lowers technical barriers for businesses.
(Source)

2. Protocol 23 XDR Upgrade (August 2025)

What’s new: The Java SDK has been updated to support Protocol 23’s new data definitions (XDR). Some older methods were removed, and new validation tools were added. Account and liquidity pool identifiers now follow a standardized format.

Why it matters: Operators running Stellar nodes need to update their software before the main network switches to Protocol 23. While this requires some effort, it sets the stage for better compatibility and compliance with global financial messaging standards like ISO-20022.

Impact: In the short term, this is neutral because of the upgrade work required. But in the long run, it’s positive for Stellar’s ability to work smoothly with traditional financial systems.
(Source)

3. Java SDK 2.0.0-beta0 (Upcoming)

What’s new: The Java SDK is getting a major update that makes it easier to interact with smart contracts and adds support for signing and verifying messages securely.

Why it matters: The new KeyPair class supports Ed25519 message signatures, following the SEP-8 standard. Developers can prepare transactions offline, improving security. Some stricter checks on asset codes and fees have been added to prevent errors.

Impact: These tools help developers build secure cross-chain applications and enable “gas-free” transactions where users don’t pay fees directly. This is promising for Stellar’s role in institutional custody and other advanced use cases.
(Source)

Conclusion

Stellar is updating its technology to support faster, more secure asset transfers and compliant decentralized finance. With key SDK improvements and Soroban enhancements, these changes could speed up partnerships like Visa’s stablecoin integration. Keep an eye on mainnet upgrade schedules and how developers adopt these new tools.