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What is expected in the development of XLM?

Stellar’s roadmap is centered on improving scalability, encouraging business use, and enabling connections with other blockchains. Key upcoming milestones include:

  1. Protocol 23 Mainnet Upgrades (Q3 2025) – Boosting transaction speed to 5,000 transactions per second (TPS).
  2. LayerZero Integration (Q4 2025) – Connecting Stellar with over 150 other blockchains for easier asset transfers.
  3. Freighter Wallet Mobile Launch (Q4 2025) – Introducing a mobile wallet with better security and one-time-use wallets.
  4. Enterprise Payment Solutions (2026) – Making it easier for businesses to use Stellar for payments without complex setups.
  5. Real-World Assets & Stablecoin Growth (2026) – Expanding tokenized assets and integrating PayPal’s PYUSD stablecoin.

In-Depth Look

1. Protocol 23 Mainnet Upgrades (Q3 2025)

What’s happening:
In September 2025, Stellar will roll out Protocol 23, which allows smart contracts to run in parallel. This means the network can handle up to 5,000 transactions per second, making it faster and cheaper to use. It also introduces better ways to track transactions through something called Unified Asset Events (The Defiant).

Why it matters:
Faster and cheaper transactions make Stellar more attractive to developers and businesses. However, Stellar still faces competition from other blockchains like Solana, which are also popular for fast transactions.

2. LayerZero Integration (Q4 2025)

What’s happening:
Stellar is partnering with LayerZero to allow assets like USDC to move seamlessly across more than 150 blockchains. This will make cross-border payments and asset transfers easier and more efficient (Scopuly).

Why it matters:
This connection increases Stellar’s usefulness, but its success depends on whether financial companies actually use it.

3. Freighter Wallet Mobile Launch (Q4 2025)

What’s happening:
The Freighter Wallet, Stellar’s digital wallet, will launch a mobile version with improved security features and single-use wallets designed for quick crypto payments (NewsBTC).

Why it matters:
This could help more people, especially in developing countries, start using Stellar. However, it will compete with well-known wallets like MetaMask.

4. Enterprise Payment Solutions (2026)

What’s happening:
Stellar plans to introduce “Hosted Mode,” a feature that lets businesses make payments with just one click, without needing to fully integrate with the blockchain. This targets companies involved in remittances and tokenized assets (U.Today).

Why it matters:
If businesses adopt this, it could be a big win for Stellar. Partnerships with companies like Visa and MoneyGram add credibility, but regulatory challenges could slow things down.

5. Real-World Assets & Stablecoin Growth (2026)

What’s happening:
Stellar aims to expand its market for tokenized real-world assets (RWAs), including U.S. Treasury tokens from Franklin Templeton and integrating PayPal’s PYUSD stablecoin (Yahoo Finance).

Why it matters:
This growth could attract institutional investors, but it depends on stable economic conditions and clear regulations.

Conclusion

Stellar’s roadmap for 2025–2026 focuses on making the network faster, easier to use for businesses, and better connected with other blockchains. The LayerZero integration and new enterprise tools could help position Stellar as a bridge between traditional finance and decentralized finance. Still, competition and how quickly users adopt these features will be key. Will Stellar’s focus on compliance and scalability unlock its full potential with institutions?

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What updates are there in the XLM code base?

Stellar’s technology received major updates in late 2025, focusing on making the network faster, more connected with other blockchains, and more private.

  1. LayerZero Integration (December 30, 2025) – Allows asset transfers across more than 150 blockchains.
  2. Protocol 23 Upgrade (September 3, 2025) – Improves smart contract performance and increases transaction speed.
  3. Protocol X-Ray (November 24, 2025) – Prepares the network for privacy features coming in early 2026.

Detailed Overview

1. LayerZero Integration (December 30, 2025)

What happened: Stellar added LayerZero’s technology, which lets users move assets like USDC smoothly between over 150 different blockchains.

This upgrade makes Stellar a stronger player in global payments by simplifying transactions that involve multiple blockchains. It also provides developers with standard tools to create apps that work across different blockchain networks, starting with Ethereum, Solana, and Cosmos.

Why it matters: This is good news for Stellar (XLM) because it positions the network as a central hub for decentralized finance (DeFi) and business solutions that need to work across multiple blockchains. Users can expect faster and cheaper cross-chain transactions. (Source)

2. Protocol 23 Upgrade (September 3, 2025)

What happened: Protocol 23 introduced a way to run smart contracts in parallel, which cuts transaction costs by about 40% and allows the network to handle up to 5,000 transactions per second.

Other improvements include storing contract data in faster memory, better caching for modules, and a new event format to help developers. Network validators can now adjust settings to improve how quickly the network reaches agreement on transactions.

Why it matters: This update is somewhat positive for Stellar (XLM). It makes the network more efficient for DeFi applications, but its success depends on developers moving their apps to the new system called Soroban. Also, node operators need to update their software to keep the network running smoothly. (Source)

3. Protocol X-Ray (November 24, 2025)

What happened: Protocol X-Ray will add built-in privacy features using advanced cryptography (zk-SNARKs) to the Soroban smart contract platform.

This allows developers to create apps that keep transactions confidential, like private payments, without slowing down the network. The test version launched on January 7, 2026, and the full upgrade is planned for January 22, 2026.

Why it matters: This is a positive long-term development for Stellar (XLM), as privacy features could attract businesses and institutions that need confidentiality. However, privacy tools may face regulatory challenges. (Source)

Conclusion

Stellar’s updates in late 2025 show a clear focus on building a scalable, connected, and private platform for decentralized finance and enterprise use. With major companies like Visa and MoneyGram already using Stellar’s network, the question is whether Stellar can become the go-to platform for combining traditional finance with decentralized finance.

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Why did the price of XLM fall?

Stellar (XLM) dropped 2.24% in the last 24 hours, underperforming the overall crypto market, which rose by 1.36%. The main reasons include technical price breakdowns, Bitcoin’s strong market dominance, and shifts in investment flows toward larger, more established assets.

  1. Technical Breakdown – XLM fell below a key support level between $0.21 and $0.22 (CoinMarketCap)
  2. Bitcoin Dominance – Bitcoin continues to dominate with 59.08% market share, pulling investment away from mid-sized coins like XLM.
  3. ETF Rotation – Investors are favoring “safer” large-cap cryptocurrencies during volatile times, leaving XLM behind in institutional interest.

Deep Dive

1. Technical Breakdown (Bearish Impact)

What happened: On December 27, 2025, XLM’s price dropped below the $0.225–$0.22 support zone, triggering automatic sell orders. It now trades near $0.21, a key psychological level last seen in October 2025.

What this means:

Watch for: If XLM closes below $0.203 (its December 2025 low), it could fall further toward $0.102, according to analyst forecasts.

2. Macro Liquidity Drain (Mixed Impact)

What’s happening: Bitcoin’s market dominance rose slightly to 59.08%, showing that investors are moving capital into Bitcoin amid cautious market sentiment.

What this means:

3. Stablecoin Competition & Regulatory Headwinds (Bearish Impact)

Current state: Stellar’s stablecoin growth is lagging behind Ethereum, which holds about 50% of the stablecoin market, according to a December 30 report from Cointribune.

What this means:

Conclusion

XLM’s recent decline reflects technical weakness and a market that’s favoring Bitcoin as a safer asset. While Stellar’s recent partnership with LayerZero (announced December 29) offers potential for long-term growth through improved interoperability, the short-term outlook depends on whether XLM can hold the $0.21 level.

Key point to watch: Will XLM break back above the $0.225 resistance in the next 48 hours, or will Bitcoin’s dominance continue to pressure it? Keep an eye on Bitcoin’s price range between $88,000 and $90,000 for broader market signals.

{{technical_analysis_coin_candle_chart}}


What could affect the price of XLM?

Stellar’s price is balancing between upcoming technology upgrades and broader market challenges.

  1. Protocol 23 Upgrade – The launch of smart contracts in Q3 2025 could bring more developers and new projects.
  2. Real-World Asset (RWA) Competition – Stellar manages $515 million in tokenized assets but faces strong competition from Ethereum and Solana.
  3. ETF and Market Trends – Money flowing into Bitcoin ETFs may keep pressure on Stellar’s price, which has dropped 48% over the past 90 days.

Deep Dive

1. Protocol 23 & Soroban Smart Contracts (Positive Outlook)

What’s happening: Stellar plans a major upgrade called Protocol 23, with a key vote on September 3, 2025. This update will allow the network to process transactions in parallel and improve its Soroban smart contracts, aiming to handle up to 5,000 transactions per second and cut costs for contract interactions by about 40%. These improvements are designed to support decentralized finance (DeFi) and tokenized real-world assets.

Why it matters: If developers start building more payment apps and tokenized asset platforms on Stellar, it could increase the network’s usefulness and demand for XLM tokens. In the past, XLM’s price jumped 78% in July 2025 before testnet launches, showing strong market interest.

2. Growth in Tokenized Real-World Assets (Mixed Impact)

Current state: Stellar currently hosts $515 million worth of tokenized assets, growing 18% year-over-year. This includes projects like Franklin Templeton’s $BENJI and WisdomTree’s stock-tracking tokens. However, Ethereum leads the market with 62% of the $1.2 trillion tokenized securities space, according to CoinDesk.

What this means: Stellar’s compliance features, like identity verification (KYC) and asset freezing, make it attractive to institutions. But its decentralized finance ecosystem is much smaller ($150 million total value locked) compared to Ethereum’s $123 billion, which limits how much investors are willing to pay extra for XLM.

3. Market Trends & Altcoin Sentiment (Potential Downside)

Market context: Bitcoin dominates 59% of the crypto market, and spot Bitcoin ETFs have attracted $57.7 billion in 2025. This tends to pull investment away from mid-sized coins like XLM. The Fear & Greed Index is at 32, indicating strong risk aversion, and XLM’s price movement has become closely linked to Bitcoin’s, with a 0.84 correlation in December.

What this means: During periods when Bitcoin is favored (“Bitcoin Season”), XLM may struggle to gain independent momentum. Technical analysis shows resistance around $0.232 and potential support near $0.21. If that support breaks, prices could fall to $0.102, according to CoinMarketCap.

Conclusion

Stellar’s future price depends on how well Protocol 23 is adopted versus the overall market’s appetite for altcoins. Keep an eye on September’s upgrade results, including new smart contract activity and transaction speeds, as well as shifts in Bitcoin ETF investments. The big question: can Stellar’s partnerships in tokenizing real-world assets attract enough institutional interest to balance out retail investors moving toward Bitcoin?


What are people saying about XLM?

The Stellar (XLM) community is divided between hopes for a price breakout and concerns about support levels. Here’s what’s trending right now:

  1. Many expect the price to reach around $0.30 in the short term.
  2. Tests of the $0.22 support level are causing some bearish (downward) warnings.
  3. The upcoming Protocol 23 upgrade is boosting long-term optimism.

Deep Dive

1. @bpaynews: $0.30 Rally Depends on Holding Support — bullish

"XLM price could hit $0.30 within 4-6 weeks if it stays above $0.22, even though some technical indicators look bearish."
– @bpaynews (2,007 followers · 109K+ impressions · Dec 24, 2025)
View original post
What this means: This is a positive sign for Stellar because $0.22 has historically been a strong support level where buyers step in. If it holds, the price could rise about 36%.

2. @sharkcryptogrp: $0.21-$0.23 Fair Value Gap Zone Draws Traders — neutral

"Price staying between $0.207 and $0.210 might be a good entry point aiming for $0.232, but there’s still risk of a breakdown."
– @sharkcryptogrp (749 followers · 2.5K+ impressions · Dec 25, 2025)
View original post
What this means: This is neutral because while some traders see buying opportunities in this price range, the overall trend has been down (-48% over the last 90 days).

3. @akandeolamilek7: $1+ Price Predictions Gain Attention — mixed

"Medium-term forecasts above $1 are coming back as Stellar grows its real-world asset tokenization and payment partnerships."
– @akandeolamilek7 (1,466 followers · 9.7K+ impressions · Dec 26, 2025)
View original post
What this means: This is mixed because while Stellar’s expanding use cases are promising, reaching $1 would require a 375% price increase from current levels, which is a big leap given the market today.

Conclusion

The outlook for Stellar (XLM) is mixed. There’s potential for a price rebound, but broader market trends remain cautious. The upcoming Protocol 23 upgrade (expected on the testnet in Q1 2026) and partnerships with companies like Visa and MoneyGram provide solid long-term support. However, traders are closely watching the $0.22 to $0.20 price range—if Stellar falls below this, it could undermine bullish expectations. Keep an eye on the 30-day MACD histogram for early signs of momentum changes.

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What is the latest news about XLM?

Stellar is navigating a challenging market by forming key partnerships and increasing real-world use, but its price continues to face pressure. Here’s the latest update:

  1. LayerZero Alliance (December 29, 2025) – Boosts cross-chain connections for smoother asset transfers.
  2. Brazil’s Crypto Growth (December 28, 2025) – Tokenized finance is gaining ground despite stable traditional markets.
  3. Support Level Breach (December 27, 2025) – XLM falls below $0.225, testing critical support between $0.21 and $0.102.

Deep Dive

1. LayerZero Alliance (December 29, 2025)

Overview: Stellar teamed up with LayerZero, a protocol that links over 150 blockchains. This partnership allows easier and cheaper transfers of assets like USDC across different networks, making Stellar a stronger player in cross-border payments.

What this means: This is a positive development for XLM, as it broadens Stellar’s role in decentralized finance (DeFi) and attracts institutional users. However, Ethereum still dominates with half of all tokenized assets, and Stellar’s smaller app ecosystem could limit growth.
(Cointribune)

2. Brazil’s Crypto Growth (December 28, 2025)

Overview: Crypto activity in Brazil increased by 43% year-over-year in 2025, largely driven by stablecoins and tokenized income products on Stellar. Mercado Bitcoin, the largest exchange in Latin America, now offers tokenized stocks through Stellar, appealing to investors seeking steady returns.

What this means: This trend is somewhat positive for Stellar. While more people are using the network, XLM’s price hasn’t yet reflected this growth. The International Monetary Fund (IMF) notes that crypto use in Brazil is driven by practical utility rather than crisis, which is a good sign for long-term adoption.
(Yahoo Finance)

3. Support Level Breach (December 27, 2025)

Overview: XLM dropped below $0.225, a key support level it had held for years, on declining trading volumes. Analysts warn that if buyers don’t defend the $0.21 level, the price could fall further to $0.102. Some technical indicators suggest a possible short-term pause in the decline.

What this means: From a technical standpoint, this is bearish. However, the coin may be oversold, which could attract buyers looking for a rebound. With XLM down 48% over the past 90 days, weak inflows from ETFs and Bitcoin’s strong market dominance (59%) increase the risk of further declines.
(CoinMarketCap)

Conclusion

Stellar is making important progress through partnerships like LayerZero and growing adoption in markets like Brazil, but its price performance is lagging behind. The network’s focus on compliant, real-world assets positions it well for institutional use, yet broader market challenges and shifting liquidity call for caution. Will ETF-driven volatility overshadow Stellar’s interoperability gains in early 2026?