XLM represents the Lumens currency, which is the native currency of the Stellar network, founded to simplify and expedite international money transfers at a low cost.
The network serves as a bridge between traditional currencies (Dollar, Euro...) and digital currencies, and is used as an intermediary in cross-border exchange operations.
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🚀 Why is XLM rising strongly these days?
1. Strong partnership with PayPal USD (PYUSD)
In June 2025, it was announced that PayPal intends to launch its stablecoin PYUSD on the Stellar network, alongside Ethereum and Solana, pending regulatory approval in New York.
The announcement sparked a surge in demand for XLM, and its impact was immediately seen as one of the reasons behind the recent 6% rise in the currency, amid a broader increase in the crypto market.
2. Strong technical trend (Technical Breakout)
XLM broke bearish technical models (Fall wedge and Descending channel), and as a result, rose by ~40%, attracting the attention of investors and technical traders.
3. Major technical shift: Protocol 23 and Soroban
Stellar is preparing to launch Protocol 23, a beta version of the core engine, with new functionalities like parallel smart contract execution and improvements in Merkle data structures.
Support for Soroban, Stellar's smart contract platform, significantly enhances DeFi and tokenization capabilities; this has increased demand for XLM.
Voting on the main upgrade is expected on August 14, 2025, and its impact is already visible in price movements.
4. Strong expansion in DeFi
Total Value Locked (TVL) on the network exceeded $100–120 million, indicating notable growth in institutional and trader participation.
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🤝 Key current partnerships
PayPal: A huge step to support PYUSD on Stellar, raising the currency's status amid real-world uses and lowering transfer fees.
MoneyGram: A partnership to accelerate global payments, especially in emerging markets.
Franklin Templeton: Issuing S-Treasuries worth over $445 million on Stellar indicates significant institutional confidence.
Mastercard and Paxos and Etherfuse: Partnerships to enhance the digital asset system in addition to the infrastructure listed by the Stellar Development Foundation.
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📈 A general overview of the current rise
Just this week, XLM recorded increases ranging from +40–72% through favorable technical market conditions and institutional announcements.
The price has approached the range of $0.40–0.43, which is its highest level since the beginning of 2024, driven by breaking important resistances and an increase in trading volume.
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🔮 Predictions and prospects
Technical analysts are targeting the range of $0.50–0.60 if the upgrade is successfully activated.
Market signals such as 'golden cross' and more institutional transactions support the continuation of the upward trend.
At the same time, there are potential risks such as market volatility and sensitivity to large 'whale' transfers (like moving 245 million XLM in 5 minutes), but the network's transparency mitigates these concerns.
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✅ Summary
Stellar (XLM) is currently experiencing a rise for several concurrent reasons:
1. Strategic partnerships with PayPal, MoneyGram, Franklin Templeton enhance its real-world use.
2. Technical evolution through Protocol 23 and Soroban drives growth in DeFi and tokenization.
3. Strong technical breakout and breaking bearish models attracting liquidity and traders.
4. Notable growth in TVL and stability of the user network; promising market features.
With the integration of these factors and close to an important event like the voting on the upgrade in August, XLM's prospects seem encouraging for further gains. However, it is always advised to follow developments and plan for risk management.
