3 Reasons Why Stellar XLM Can Explode!

Stellar ($XLM) has been moving under the radar for quite a long time. Even though it’s a top 15 coin by market cap, and it’s up 360% in the last 12 months. Now people are starting to notice….. Stellar has various features going for itself. I found three crucial factors that could send its price soaring even higher. And, you may have been overlooking them. 

This isn’t just hype or speculation, this can change everything for Stellar. If you want an edge in this bull run, this video shows you why Stellar’s moment is about to happen. So, stick around, you don’t want to miss out on this since it could cost you big.

What Is Stellar ($XLM)?

Stellar ($XLM) is a decentralized payment network. It offers a cross-border payment solution, like Ripple. That’s no coincidence, since Stellar’s co-founder, was also a co-founder of Ripple, Jed McCaleb. He and Joyce Kim created Stellar in 2014. McCaleb didn’t agree with Ripple’s vision, so he left and started Stellar. He was also the founder of the Mt. Gox exchange.

Behind Stellar is the Stellar Development Foundation (SDF). The foundation is in control of all technical and business developments. That also created a bit of a risk or trust issue. The Foundation holds 40% of all $XLM or Lumen tokens. Out of the 50 billion $XLM tokens, 31 billion circulate. After 11 years, that’s still a high number sitting idle. However, the Lumen token has no staking options. 

So, centralization is an issue with Stellar. That’s in the same vein as Ripple. Furthermore, there are only around 75 to 100 nodes that secure the network. This is a relatively small number and fuels the centralization issue. With such few nodes, node operators can collaborate and attack the processing system. And of course, there are positives, too.

Fast and Low-Cost Transactions

Stellar can send digital assets all over the world, and you only need 1 Lumen in your account to use the network. It’s fast, transactions happen within 5 seconds. This could go down to 2.5 seconds in Q4. Compared to banks, that’s ultra-fast. Banks can take days to process an international transaction.

The network’s average transaction fee is 0.000002 $XLM. The minimum fee is 0.0001 $XLM. These fees are a fraction of a cent, even if the current $XLM price of 50 cents goes well above $1. Stellar claims that currently there are 9.7 million accounts. See the picture below.

Source: Blog

So, that’s a quick round up of what Stellar is about. Now let’s dive into these three reasons why it can explode from here.

Soroban Smart Contracts

Soroban is a smart contract platform on Stellar. It was a big boost for Stellar when it launched last year, in 2024. It allows devs to add dApps and programmability to the network. This is great for DeFi development on Stellar. 

Stellar keeps upgrading this platform. That’s what makes it appealing and successful. The $100 million adoption fund by the SDF also helped. It’s scalable and offers plenty of worldwide on- and off-ramps. They come with the Stellar network.

A set of new proposals also lowered the costs for Soroban. It also increased CPU capacity. So, devs can incorporate a variety of projects on Stellar into their dApps. For example,

• Protocols
• Wallets
• Bridges
• Oracles
• Tokenization, bringing RWA into the Stellar network and ecosystem.

Furthermore, you can launch your own token on Soroban. In contrast to Lumen ($XLM), you can include staking options for these tokens. So, overall, Soroban also expands the ecosystem.

Major Partnerships

Stellar has various major partnerships going on. Here are the three biggest partners.

• MoneyGram offers cross-border P2P payments and money transfers. It also offers on- and off-ramps for cash to crypto. In June, the three-year celebration was due.
• Circle is the issuer of the $USDC stablecoin. The future for stablecoins in the US just took a new turn with the approval of the Genius Act.
• Franklin Templeton is a global investment management firm.
  

Another hot new partner is PayPal. It will bring its $PYUSD stablecoin to Stellar. This opens 180 countries for Stellar. 

Stellar has set some serious ecosystem goals for this year. That’s a good sign and shows that the team remains active. Otherwise, you would also not be able to rank 13th by market cap. So, here are the two top goals.

1. $3 billion in yield-bearing RWAs. That’s a 10x improvement on how it closed in 2024.
2. Top ten chain in DeFi TVL. Currently, it ranks as #37. However, it’s experiencing rapid growth. So, with Soroban firing on all cylinders, it should get some TVL boost in its DeFi ecosystem.
   

Institutional Confidence

Institutional confidence and interest is rising for Stellar. Franklin Templeton decided to use Stellar’s chain. It has already launched a tokenized money market fund live on the chain, called BENJI. The chain offers what Templeton seeks for its RWA, fast and low-cost transactions. What also played an important role is that Stellar is compliant. 

BENJI’s overall RWA investments are $810 million. Stellar has the majority share of this with $431 million. Its growth is steady, as the chart shows. Templeton recently tokenized $446 million worth of US Treasuries on Stellar. That’s the kind of RWAs you can expect with players like Franklin Templeton. 

Source: RWA.XYZ

Other big firms that work together with Stellar in one form or the other, include, among others,

• IBM for developing the global payment network “WorldWire”.
• Visa to support Visa cards linked to Stellar wallets.
• MasterCard for secure P2P transfers.
• Paxos for stablecoins.
• Deloitte for financial operations.

According to Nansen, active addresses are also increasing. Within a week, they went from 65k to 80k. 

So, everything combined explains why Stellar sees these price surges. This only seems to be the beginning, though. 

Lumens current ATH is 87 cents. That’s a 2x from here…..In a full-on bull market, it could easily go to $1.50 or better. What do you think? Where do you see the $XLM price max out? Let me know in the comments and join our X and Discord channels.

Disclaimer

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