What is expected in the development of XLM?

Stellar is making important progress with these key updates planned for late 2025:

1. Protocol 23 Mainnet Finalization (Q4 2025) – Upgrades to handle up to 5,000 transactions per second (TPS) and improve smart contract performance.
2. Enterprise Payment Flows (Q4 2025) – New tools to help businesses make on-chain payments easily, including single-use wallets for users new to crypto.
3. Composable Data Platform 1.0 (Q4 2025) – Better analytics and debugging tools for developers building on Stellar.

Deep Dive

1. Protocol 23 Mainnet Finalization (Q4 2025)

Overview
Protocol 23 started rolling out in early September 2025 and aims to complete its full launch by the end of the year. This upgrade will allow Stellar to process transactions in parallel and track assets more efficiently (The Defiant). The goal is to reach 5,000 transactions per second, which would make Stellar one of the fastest blockchains for decentralized finance (DeFi).

What this means
This is positive for Stellar (XLM) because faster transaction speeds could attract large companies interested in tokenizing real-world assets. Currently, Stellar handles over $460 million in daily transactions in this area. However, there is some risk that the network could face stability issues as these changes are fully implemented.

2. Enterprise Payment Flows (Q4 2025)

Overview
Stellar is developing new features to help businesses perform financial transactions on the blockchain. This includes upgrades to the Freighter Wallet for better security and the introduction of single-use wallets designed for people who don’t usually use cryptocurrencies (NewsBTC).

What this means
This update is neutral to positive. Making it easier for businesses to use Stellar could increase its real-world use. Success depends on forming partnerships, such as the rumored integration with PayPal’s PYUSD stablecoin. Regulatory challenges around compliant asset tokenization remain a potential obstacle.

3. Composable Data Platform 1.0 (Q4 2025)

Overview
The new Composable Data Platform (CDP) 1.0 will offer developers advanced tools to analyze, debug, and optimize Soroban smart contracts. This is part of Stellar’s effort to become a leading platform for DeFi applications (The Defiant).

What this means
This is positive for Stellar. Better developer tools can speed up the creation of decentralized apps (dApps) and increase the total value locked (TVL) on the network, which has already grown ninefold year-over-year to $144 million. Still, competition from established platforms like Ethereum and Solana could limit how much Stellar’s DeFi ecosystem grows.

Conclusion

Stellar’s roadmap focuses on improving speed, supporting business use cases, and enhancing developer tools. These efforts aim to connect traditional finance with decentralized finance. While the success of Protocol 23 could boost Stellar’s price and adoption, challenges remain, including technical risks and broader economic factors. The big question is: Will Soroban smart contracts unlock Stellar’s full DeFi potential?

What updates are there in the XLM code base?

Stellar’s software is actively being updated to support Protocol 23 and improve its developer tools.

1. Soroban & Protocol 23 Prep (August 2025) – The Java SDK beta now supports transaction polling, message signing, and advanced account types.
2. Security & Breaking Changes (July 2025) – The JavaScript SDK v12 removes outdated features and standardizes how contracts interact.
3. Smart Contract Tools (June 2025) – New features make deploying and managing smart contracts easier.

In-Depth Look

1. Soroban & Protocol 23 Prep (August 2025)

What’s new? The Java SDK 2.0.0-beta0 update gets ready for Protocol 23 by improving support for Soroban, Stellar’s smart contract platform, and adding features for more complex account types.

Key improvements include:

• A new pollTransaction method that retries automatically when checking transaction status on Soroban.
• Message signing and verification now follow the Stellar Enhancement Proposal SEP-40 standards.
• Support for muxed accounts (also called M-addresses) and liquidity pool IDs in key classes.

Why it matters: These updates make it easier for developers to build advanced decentralized finance (DeFi) applications and enable better interaction across different blockchains. Tools to handle transaction delays and multi-signature accounts improve security and usability.
(Source)

2. Security & Breaking Changes (July 2025)

What’s new? The JavaScript SDK version 12.0.0 includes important security fixes and removes old code to meet Protocol 23 standards.

Key changes include:

• Removal of outdated Horizon API fields like transaction_count and base_fee.
• RPC endpoints now use cursor instead of pagingToken for pagination.
• Contract client APIs are now standardized to support cross-chain authentication.

Why it matters: While these changes might require some adjustment for developers in the short term, they reduce technical debt and improve security. This makes Stellar more appealing for larger projects and institutions that need clear, auditable code.
(Source)

3. Smart Contract Tools (June 2025)

What’s new? Both the Java and JavaScript SDKs added new utilities to simplify working with Soroban smart contracts.

Key features include:

• A ContractClient.deploy() method that lets developers deploy WebAssembly (WASM) contracts with one command.
• An AssembledTransaction class in the JS SDK to handle complex, multi-step contract calls.
• Tools to convert between JSON and XDR formats, making debugging easier.

Why it matters: These improvements lower the barrier to entry for developers building on Stellar. Faster and simpler contract deployment could help grow Stellar’s decentralized finance ecosystem and increase total value locked (TVL).
(Source)

Conclusion

Stellar is focusing on making its smart contracts more scalable and secure with Protocol 23. By enhancing Soroban tools and updating its SDKs, Stellar is positioning XLM to benefit from real-world asset tokenization and institutional DeFi projects. As the Protocol 23 upgrade approaches mainnet voting, it will be interesting to see if these improvements encourage developers to move from Ethereum Virtual Machine (EVM) platforms to Stellar.

Why did the price of XLM fall?

Stellar (XLM) dropped 0.76% in the last 24 hours, underperforming the overall crypto market, which fell by 0.47%. This decline was driven by technical resistance levels, investors taking profits after recent gains, and mixed feelings about SWIFT’s new blockchain projects.

1. Technical Pullback – Price momentum weakened after hitting key resistance points.
2. Market-Wide Dip – Bitcoin’s stalled rally pulled other cryptocurrencies, including XLM, down.
3. SWIFT Competition – SWIFT’s new blockchain prototype raised questions about Stellar’s position in cross-border payments.

Deep Dive

1. Technical Resistance (Bearish Impact)

Overview: Stellar’s price hit resistance near $0.37 and couldn’t maintain the gains it made after a breakout on September 29 (Coindesk). Technical indicators like the MACD (-0.0011) and RSI (47.58) show weakening momentum.

What this means: The price stayed below the 30-day simple moving average (SMA) of $0.374, a key resistance level. Many traders likely sold to lock in profits after the recent 3.7% rally, increasing selling pressure.

Watch: If XLM closes above $0.37, it could signal renewed buying interest. But if it falls below $0.36, losses may continue.

2. Bitcoin-Driven Market Weakness (Neutral Impact)

Overview: Bitcoin’s failure to break above $115,000 led to a broader market pullback, with XLM following the trend (Cryptopotato).

What this means: Altcoins like Stellar often move in line with Bitcoin, especially when the market is uncertain. The crypto fear/greed index is at a neutral 43, showing cautious investor sentiment and limited buying activity.

3. SWIFT’s Blockchain Moves (Bearish Sentiment)

Overview: SWIFT partnered with Consensys to create an open ledger for tokenized assets (Yahoo Finance), raising concerns about Stellar’s role in global payments.

What this means: Although Stellar has strong real-world use cases, like partnerships with banks in Southeast Asia, SWIFT’s new blockchain efforts could pose long-term competition.

Conclusion

Stellar’s recent price drop is mainly due to short-term profit-taking and Bitcoin’s stalled rally, along with growing concerns about SWIFT’s blockchain initiatives. While technical signals suggest caution, Stellar’s expanding partnerships with companies like Visa and MoneyGram may help stabilize its price.

Key watch: Will XLM hold the $0.36 support level, and how successful will SWIFT’s blockchain plans be?

What could affect the price of XLM?

Stellar’s price is currently influenced by a mix of technical improvements and market feelings.

1. Protocol 23 Upgrade – A big boost in speed (up to 5,000 transactions per second) could attract more developers (Positive).
2. Real-World Assets & Partnerships – Collaborations with Visa, PayPal, and $522 million in tokenized assets support growth (Positive).
3. Regulatory Changes – Progress in following rules balanced by policy uncertainties (Mixed).

In-Depth Look

1. Protocol 23 Upgrade (Positive Impact)

What’s Happening:
Stellar plans to vote on Protocol 23 on September 3, 2025. This upgrade aims to handle 5,000 transactions per second and confirm transactions in just 2.5 seconds by running processes in parallel. It also improves Soroban smart contracts, lowering fees and making the network more scalable for decentralized finance (DeFi) and business use.

Why It Matters:
Faster processing could make Stellar a leading platform for big institutions, especially for payments and tokenized assets. When Soroban launched in 2024, it caused a 7-fold increase in activity on the network.

2. Real-World Assets & Partnerships (Positive Impact)

What’s Happening:
Stellar currently supports $522 million in tokenized assets, including U.S. Treasury bonds from Franklin Templeton. It has also partnered with Visa (for stablecoin payments), PayPal (integrating PYUSD stablecoin), and the United Nations Development Programme (UNDP) for blockchain projects.

Why It Matters:
These partnerships could increase demand for Stellar’s native token, XLM, as a bridge currency in cross-border payments. For example, Visa’s move to use Stellar (Visa) may boost transaction volume and overall network use.

3. Regulatory Risks & Competition (Mixed Impact)

What’s Happening:
Stellar includes built-in Know Your Customer (KYC) tools to comply with European (MiCA) and U.S. regulations. However, competitors like Ripple (XRP) and Solana have stronger liquidity and market presence. XLM’s price closely follows XRP’s, with a 90-day correlation of 0.95, meaning it can be affected by XRP’s price swings.

Why It Matters:
While regulatory support for stablecoins like PYUSD could help Stellar, competition in payments and tokenizing real-world assets might limit growth. XLM has gained 58% since July 2025, showing strong momentum, but Bitcoin’s dominance at 58.1% may pull investment away from altcoins like XLM.

Conclusion

Stellar’s future price depends on successfully rolling out Protocol 23 and turning partnerships into lasting adoption. Growth in tokenized assets and regulatory compliance are advantages, but XLM remains sensitive to Bitcoin’s market influence and XRP’s moves. The upcoming Meridian 2025 conference (September 17–18) could be a key moment for attracting new institutional investors.

What are people saying about XLM?

The Stellar (XLM) community is divided between excitement over a potential breakout and concerns about a price correction. Here’s what’s currently trending:

1. $0.36 support battle – Buyers and sellers are fighting over this important price level.
2. Protocol 23 upgrade buzz – The upcoming Q3 mainnet update is creating mixed opinions.
3. XRP price connection – Traders are debating whether XLM will follow XRP’s recent rally.

Deep Dive

1. @mkbijaksana: Key Support Levels Under Pressure 🐂

“XLM has two important price points: $0.3613 and $0.3251. A correction seems likely, but the overall trend is still positive.”
– @mkbijaksana (23.1K followers · 127K impressions · 2025-08-27 02:32 UTC)
View original post
What this means: Neutral for XLM – Holding above $0.3613 could keep prices stable, but falling below $0.3251 might lead to a 7% drop to lows seen in August.

2. @StellarOrg: Protocol 23 Mainnet Launch Approaching 🚀

“The Protocol 23 upgrade will improve scalability and security, which could boost XLM — or reveal if expectations are too high.”
– Community post (2025-08-19 16:44 UTC)
View original post
What this means: Positive potential – If the upgrade launches successfully in Q3 2025, it may attract decentralized finance (DeFi) projects to Stellar. However, if adoption is slow, there could be a “sell the news” reaction where prices dip after the hype.

3. @JasonKrypto1: Is XLM Following XRP’s Rally? 📈

“Bitcoin’s strength is pushing XLM higher. We’re seeing bullish signals at current price levels.”
– @JasonKrypto1 (89.4K followers · 302K impressions · 2025-08-28 12:39 UTC)
View original post
What this means: Mixed signals – XLM often moves in line with XRP (with a 0.95 correlation), but a 239% spike in trading volume on August 8 suggests XLM might have its own momentum.

Conclusion

Overall, the outlook for Stellar (XLM) is cautiously optimistic. Technical traders are watching for a move above $0.40 if the Protocol 23 upgrade goes smoothly. However, some warn that after a 58% gain in the past 90 days, the price might be stretched too far. Keep an eye on the $0.3251 to $0.3613 range this week — breaking either way could determine XLM’s direction for September.

What is the latest news about XLM?

Stellar is making strategic moves and gaining technical momentum despite some market ups and downs. Here’s the latest:

1. Asia-Pacific Growth (September 29, 2025) – XLM jumped 3.7% thanks to new banking partnerships and progress with its smart contract platform.
2. SEC Simplifies ETF Approvals (September 29, 2025) – New rules could speed up the launch of crypto ETFs, including those tied to Stellar.
3. SWIFT’s Blockchain Challenge (September 29, 2025) – SWIFT’s new blockchain project poses a challenge to Stellar’s role in cross-border payments.

In-Depth Look

1. Asia-Pacific Growth (September 29, 2025)

What happened: Stellar’s token, XLM, rose 3.7% to $0.37, with trading volumes nearly double the daily average. This boost came after Stellar expanded partnerships with banks in Southeast Asia to improve cross-border payments and made progress on Soroban, its smart contract platform. The price increase attracted both everyday investors, since XLM is priced under $1, and larger institutional investors who saw strong technical signals.
Why it matters: This is a positive sign for XLM, showing real-world use in money transfers and decentralized finance (DeFi) could keep the momentum going. But because some of the interest comes from retail investors, the price could still be volatile. (CoinDesk)

2. SEC Simplifies ETF Approvals (September 29, 2025)

What happened: The U.S. Securities and Exchange Commission (SEC) removed a complex filing requirement for crypto ETFs, allowing exchanges to list these funds more quickly under general rules. Experts like James Seyffart from Bloomberg say approvals could now happen “absurdly fast.” Hashdex, a fund manager, has already filed to include XLM in its ETF offerings.
Why it matters: This change is neutral to positive for XLM. Faster ETF approvals could increase trading volume and attract more institutional investors. However, Stellar will still compete with bigger cryptocurrencies like SOL and XRP for spots in these funds. Clear regulations will be important going forward. (CoinDesk)

3. SWIFT’s Blockchain Challenge (September 29, 2025)

What happened: SWIFT, the global messaging network for banks, teamed up with Consensys to develop a blockchain ledger for tokenized assets. This move directly challenges Stellar’s position in cross-border payments. Despite years of trying to disrupt SWIFT, Stellar hasn’t significantly reduced SWIFT’s dominance, which still takes about five days for transfers compared to blockchain’s minutes.
Why it matters: This is a negative signal for Stellar’s long-term prospects. SWIFT’s move into blockchain could limit Stellar’s market share unless Stellar speeds up development of unique features like central bank digital currencies (CBDCs) or micropayments. (Yahoo Finance)

Conclusion

Stellar’s recent price moves show a balance between positive adoption in Asia and tough competition from SWIFT. While the SEC’s ETF rule changes could help, XLM’s future depends on how well it can stand out in the cross-border payments space. The success of Soroban’s smart contracts and regional bank partnerships will be key to competing with SWIFT’s strong presence.