Why did the price of XLM go up?

Stellar (XLM) increased by 1.87% in the past 24 hours, slightly underperforming the overall crypto market, which rose 2.18%. This rise is linked to excitement around its upcoming Protocol 20 upgrade (mainnet vote on October 22) and a technical bounce back from oversold conditions.

1. Protocol 20 Upgrade – Testnet launch and developer preparations have boosted confidence.
2. Technical Recovery – Indicators showed the price was oversold, signaling a potential rebound.
3. Market Sentiment – Investors are shifting toward altcoins like XLM, despite ongoing cautiousness (Fear & Greed Index at 33).

Deep Dive

1. Protocol 20 Upgrade (Positive Outlook)

Overview: Stellar’s Protocol 20 upgrade is in its final stage. The testnet went live on October 21, and the mainnet validators will vote on October 22 (U.Today). This upgrade aims to improve network stability, fix bugs, and prepare for better smart contract capabilities with Soroban.

What this means: Validators and network operators are getting ready, which reduces uncertainty about the upgrade. Although the upgrade doesn’t directly change how XLM holders use their coins, trading volume jumped nearly 47% in 24 hours ($242 million), indicating traders are positioning themselves ahead of the vote.

What to watch: The result of the mainnet vote on October 22 and how the network performs after the upgrade.

2. Technical Recovery (Mixed Signals)

Overview: XLM’s 7-day Relative Strength Index (RSI) rose to 42.4, moving out of oversold territory. The price also moved above its 7-day and 200-day simple moving averages (around $0.32 and $0.33). The MACD indicator is still negative but shows that downward momentum is slowing.

What this means: Traders likely took advantage of the oversold conditions after XLM dropped about 24% over the last 90 days. The price found support near a key technical level ($0.331), which is important for swing traders.

What to watch: If XLM can stay above $0.35 (the 50-day moving average), it could confirm a stronger bullish trend.

3. Market-Wide Altcoin Rotation (Neutral Impact)

Overview: The Altcoin Season Index rose 7.69% in 24 hours, suggesting some money is moving from Bitcoin into altcoins. XLM’s trading volume surged 46.99%, outpacing its price increase.

What this means: Bitcoin still dominates the market with 59.21% share, but investors are showing more interest in undervalued altcoins like XLM. However, the overall market sentiment remains cautious, as shown by the Fear & Greed Index at 33.

Conclusion

XLM’s recent gains are driven by optimism around the Protocol 20 upgrade and some technical buying. However, cautious market sentiment limits how far prices can rise. Key points to watch: Can XLM maintain levels above $0.33 after the upgrade? Will traders take profits and push prices down? Also, keep an eye on validator participation in the Protocol 20 vote as a sign of network health.

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What could affect the price of XLM?

Stellar’s price is influenced by technology updates and changes in institutional interest.

1. Protocol 20 Upgrade – A vote on October 22 could improve network stability but may not excite the market.
2. Institutional Interest – WisdomTree’s European XLM ETP ($22.57 billion in assets) shows growing regulated demand.
3. Altcoin Liquidity Challenges – Bitcoin’s dominance at 59.14% is drawing funds away from Stellar, which sees $239 million in daily trading volume.

Deep Dive

1. Protocol 20 Upgrade (Mixed Impact)

Overview:
Stellar’s Protocol 20 upgrade is in final testing as of October 21. Validators will vote on October 22 to implement important fixes that improve network stability and prepare for future smart contract features called Soroban. While users won’t see immediate changes, node operators need to update their software to keep the network running smoothly (U.Today).

What this means:
The upgrade is unlikely to boost the price right away since it doesn’t add flashy new features. In fact, XLM’s price dropped 2.9% after the announcement. However, if the upgrade goes smoothly, it could build confidence among developers ahead of the bigger Protocol 23 smart contract update planned for later this year.

2. Enterprise Adoption vs. Ripple Rivalry (Bullish)

Overview:
WisdomTree recently launched an XLM exchange-traded product (ETP) in Europe, adding to over $500 million in crypto ETP assets. Meanwhile, Visa is testing stablecoins on Stellar, positioning it as a competitor to Ripple’s XRP, which faces ongoing legal challenges. Interestingly, 45% of XLM holders also own XRP, which can cause price movements in one to affect the other (GalacticTalk).

What this means:
Institutional investment through regulated products like the ETP could help XLM separate itself from XRP’s legal troubles. Stellar’s ability to handle 5,000 transactions per second and its $460 million in tokenized assets make it an attractive option for regulated investors, especially if Ripple faces more regulatory pressure.

3. Macro Liquidity Drain (Bearish)

Overview:
Bitcoin’s market dominance rose to 59.14%, up 1.07% over the past week, as investors move away from altcoins amid concerns about a recession. Stellar’s price has become closely linked to Bitcoin’s, with a 30-day correlation of 0.88, making it vulnerable to broader market sell-offs.

What this means:
Until the overall crypto market sentiment improves (the Fear & Greed Index is currently at 33, indicating “Extreme Fear”), XLM may continue to face downward pressure despite its $105 billion market cap. The 50-day exponential moving average (EMA) at $0.36 is a key support level; if XLM falls below this, automated trading systems might trigger more selling.

Conclusion

Stellar’s future depends on balancing network stability with a challenging market environment. Its growing enterprise partnerships offer some protection, but XLM’s price still moves with Bitcoin’s liquidity trends. The upcoming Protocol 23 smart contract upgrade in Q4 could spark more developer interest beyond just payments. Keep an eye on the 30-day active address count, which is currently steady at about 58,000 per day.

What are people saying about XLM?

The Stellar (XLM) community is divided between excitement and caution as the upcoming Protocol 23 upgrade approaches. Here’s what people are talking about:

1. Upgrade expectations – Protocol 23 aims to improve scalability, but some remain skeptical.
2. $7.20 price prediction – Trader Peter Brandt is optimistic, but others question if it’s realistic.
3. Technical challenges – XLM’s price hit resistance at $0.42, raising concerns about a possible pullback.

In-Depth Look

1. @StellarOrg: Mixed Feelings on Protocol 23 Vote

“Will Protocol 23’s scalability upgrade push #XLM higher, or will investors take profits?”
– @StellarOrg (1.2M followers · 28k impressions · August 19, 2025)
View original post
What this means: People are hopeful but cautious. The upgrade aims to increase transaction speed to 5,000 transactions per second, which could make Stellar more efficient. However, since XLM’s price has dropped 24% over the past 90 days, some traders worry that excitement around the upgrade might lead to a “buy the rumor, sell the news” scenario, where prices rise before the event but fall afterward.

2. @PeterBrndt: Bullish $7.20 Price Target

“XLM has doubled in Q3… Experienced trader predicts $7.20 if support at $0.20 holds.”
– @PeterBrndt (650k followers · 15k impressions · July 18, 2025)
View original post
What this means: Brandt’s forecast is optimistic, assuming XLM can maintain key support levels and follow a growth pattern similar to XRP’s impressive 495% yearly gain. However, the current Relative Strength Index (RSI) of 78 suggests the coin might be overbought, meaning a price correction could happen soon.

3. @mkbijaksana: Price Resistance at $0.42 Signals Possible Pullback

“XLM failed to break above $0.42, which could lead to a drop toward $0.39 support.”
– @mkbijaksana (89k followers · 12k impressions · August 27, 2025)
View original post
What this means: In the short term, this is a bearish sign. After failing to break through $0.42, XLM’s price fell by nearly 4%. Traders are now watching the $0.403–$0.406 support area closely. If the price falls below this zone, it could end the current daily upward trend.

Conclusion

Overall, the outlook for Stellar (XLM) is cautiously optimistic. The upcoming Protocol 23 upgrade could improve the network’s performance, but technical challenges and recent price resistance create uncertainty. Long-term confidence is supported by institutional interest, like Franklin Templeton’s $445 million in tokenized treasuries, and partnerships with Visa and PayPal that increase real-world use. Key price levels to watch are between $0.40 and $0.42, as well as the 50-day moving average around $0.325. A drop below these could trigger automated selling and further price declines. Keep an eye on the Protocol 23 mainnet vote scheduled for September 3rd to see how the market reacts.

What is the latest news about XLM?

Stellar is moving forward with important updates and gaining interest from big investors. Here’s a quick summary:

1. Protocol 20 Upgrade Preparation (October 21, 2025) – Network validators are getting ready to improve stability and fix bugs.
2. WisdomTree XLM ETP Launch (October 14, 2025) – Europe’s first physically-backed XLM fund is now available for regulated investors.
3. Market Volatility During Upgrades (October 17, 2025) – Despite a price drop, trading activity increased, showing strong trader interest.

In-Depth Look

1. Protocol 20 Upgrade Preparation (October 21, 2025)

What’s happening:
Stellar is planning a major upgrade called Protocol 20. Validators (the network’s gatekeepers) will vote on it on October 22, right after testing it on October 21. This upgrade focuses on fixing bugs and making the network more stable. Node operators will need to update their software, but regular users won’t have to change anything.

Why it matters:
This upgrade won’t immediately affect the price of Stellar (XLM), but it should make the network more reliable, which is important for big companies thinking about using it. If there are any delays or disagreements during the vote (which is unlikely given Stellar’s history), it could cause some short-term uncertainty. (U.Today)

2. WisdomTree XLM ETP Launch (October 14, 2025)

What’s happening:
WisdomTree introduced Europe’s first exchange-traded product (ETP) backed by actual Stellar (XLM) coins. It’s available on the SIX Swiss Exchange and Euronext markets in Paris and Amsterdam, with plans to launch on Germany’s Xetra soon. The fund charges a 0.5% management fee.

Why it matters:
This is good news for XLM because it offers a regulated way for big investors to get involved. WisdomTree already manages over $22 billion in crypto funds, so this product has strong backing. However, it might take some time before large amounts of money flow in. (Binance Square)

3. Market Volatility During Upgrades (October 17, 2025)

What’s happening:
On October 17, the price of XLM dropped by 7.65% to $0.3011. At the same time, the amount of open interest (the total value of active trades) jumped by $140 million, showing that many traders are betting on a price rebound. Binance traders held 27% of these positions, the largest share.

Why it matters:
This mixed signal suggests some uncertainty in the short term. The price drop contrasts with the increased trading activity, which could mean traders are either giving up or preparing to buy more. Watching if the price can rise above $0.35 will be key to seeing if the market turns positive. (U.Today)

Conclusion

Stellar is balancing important technical improvements with growing interest from institutional investors. However, general caution in the crypto market and Bitcoin’s strong dominance might limit big price gains for now. The big question is whether the Protocol 20 upgrade will help bring more real-world assets onto the Stellar network after it’s implemented.

What is expected in the development of XLM?

Stellar is making steady progress with these key updates:

1. Protocol 23 Enhancements (Q4 2025) – Improvements to smart contracts and overall network speed.
2. Freighter Wallet 2.0 (2026) – New features like easier login options and support for multiple blockchains.
3. RWA Expansion (2026) – Growing use of tokenized assets and stablecoins by big companies.

Deep Dive

1. Protocol 23 Enhancements (Q4 2025)

Overview: Protocol 23, set to launch on the main network in late 2025, focuses on making Stellar’s Soroban smart contract platform faster and more efficient. It aims to handle up to 5,000 transactions per second by processing multiple transactions at the same time. It also improves how assets are tracked and lowers costs when different smart contracts interact. These changes are designed to attract developers working on decentralized finance (DeFi) and business applications (CoinDesk).
What this means: This is good news for Stellar (XLM) because better speed and efficiency can encourage more developers and companies to use the platform. However, if apps using Soroban take longer to launch, it could slow down growth.

2. Freighter Wallet 2.0 (2026)

Overview: The Freighter wallet, which is open-source and used to manage Stellar assets, will get upgrades like social media login options, the ability to swap assets across different blockchains, and tools to help businesses meet regulations. A mobile app is also in the works to make it easier for users to interact with the network on their phones (CoinDesk).
What this means: This update could help more everyday users adopt Stellar by making it simpler to use. Still, Freighter faces strong competition from popular wallets like MetaMask and Trust Wallet.

3. RWA Expansion (2026)

Overview: Stellar plans to expand its $522 million market in real-world assets (RWA) by partnering with companies like WisdomTree and PayPal. The focus is on tokenizing traditional financial products such as treasuries and stablecoins like PYUSD, as well as creating compliant systems for cross-border payments (CCN).
What this means: This is promising if regulations become clearer, helping Stellar gain trust from traditional finance. But if adoption by big financial players falls behind competitors like Ethereum, it could be a setback.

Conclusion

Stellar’s roadmap is focused on making the network faster, easier to use, and better connected to traditional finance. Protocol 23 and the push into real-world assets could strengthen its position in regulated asset tokenization, while wallet improvements may attract more users. The big question is whether Soroban’s technical upgrades will lead to real growth in the Stellar ecosystem by 2026.

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What updates are there in the XLM code base?

Stellar’s latest software update, called Protocol 23 "Whisk," brings major improvements to make the network faster and ready for decentralized finance (DeFi) applications.

1. Parallel Smart Contracts (September 5, 2025) – Lets multiple transactions run at the same time, increasing speed and capacity.
2. Unified Event Formatting (September 5, 2025) – Makes it easier for developers to work with Stellar by standardizing how events are reported.
3. Protocol 23 Mainnet Launch (September 3, 2025) – The core upgrade went live, improving network performance and compliance features.

Deep Dive

1. Parallel Smart Contracts (September 5, 2025)

What it is: This update allows Stellar to process many smart contract transactions simultaneously, boosting its transaction speed from about 1,000 to 5,000 transactions per second (TPS).

By introducing a new way to handle transactions in parallel, the network reduces delays and congestion. This means developers can create decentralized apps (dApps) that finalize transactions in about 2.5 seconds and cost less than a cent (around $0.00001) per operation.

Why it matters: This is a big positive for Stellar (XLM) because it makes the platform more attractive for DeFi projects that need fast and cheap transactions. (Source)

2. Unified Event Formatting (September 5, 2025)

What it is: Stellar has standardized how events are formatted across its APIs (RPC and Horizon). This means developers get consistent and clear data when building apps.

The update follows the SEP-41 standard, combining smart contract events (Soroban) and traditional Stellar operations into one format. This simplifies troubleshooting and monitoring for apps dealing with payments, tokenized assets, or cross-chain activities.

Why it matters: While this change doesn’t immediately impact XLM’s price, it helps developers build on Stellar more easily, which supports long-term growth—especially for businesses using Stellar’s ISO 20022-compliant system. (Source)

3. Protocol 23 Mainnet Launch (September 3, 2025)

What it is: After testing and adjustments, Protocol 23 officially launched on the main network. It includes important improvements for node operators and institutions.

Key features include:

• State archival to reduce memory use
• Reusable module caches that cut costs of contract calls by about 30%
• Enhanced compliance controls for regulated assets

Some exchanges, like Upbit, paused XLM trading during the upgrade to ensure a smooth transition.

Why it matters: There may be short-term price drops due to upgrade-related uncertainty, but the long-term outlook is positive. These improvements strengthen Stellar’s position in regulated asset tokenization, which already includes over $522 million in on-chain real-world assets (RWAs). (Source)

Conclusion

Stellar’s Protocol 23 is a major step toward making the network scalable and ready for enterprise-level DeFi. The parallel transaction processing and improved developer tools stand out as key benefits. While short-term price swings are possible due to upgrade risks, Stellar’s focus on real-world assets and compliance could fuel steady growth. It will be interesting to see how Stellar uses its ISO 20022 advantage to compete with rivals like Ripple in 2026.