Stellar Lumens (XLM) Surges 75% in a Week, Driven by Protocol 23 Upgrade

Stellar Lumens (XLM) has experienced a remarkable surge in recent weeks, with its price increasing by 75% over the past week and 86% over the past two weeks. This performance has outpaced many top assets in the cryptocurrency sector, making it a standout performer. The upcoming Protocol 23 upgrade on the Soroban platform has significantly boosted investor interest, as it promises to enhance the network's performance through optimizations in transaction execution and state management. The proposal is set to be voted on in August 2025, with approval expected in the third quarter of the year.

XLM's price action has shown strong momentum, with a 35% surge in just 24 hours, reaching $0.4021. This breakout has confirmed bullish sentiment, as the market cap has risen to $12.50 billion, reflecting increased demand from traders and investors. The recent Bitcoin price rally to an all-time high around $118K has contributed to overall market optimism, but Stellar's price spike is also driven by its own ecosystem developments. The Soroban smart contract platform upgrade is a key factor, along with Stellar's growing real-world applications, such as cross-border payroll and institutional integrations like Franklin Templeton's tokenization of U.S. Treasuries worth $446 million. Additionally, Stellar's Total Value Locked (TVL) in DeFi has reached an all-time high, further boosting its appeal.

Technically, XLM's price has broken above a multi-year descending trendline dating back to 2021, indicating a potential impulsive rally. Analyst Javon Marks has identified $0.681 as the next resistance level, with the potential to extend to $1.2918 if bullish pressure continues. ChartNerdTA has also shared a chart showing a breakout from a flag formation, predicting that XLM could push even further, with $1.59 as a potential upside target in the coming weeks. This optimistic outlook is supported by the growing interest in the Stellar network's capabilities, particularly its focus on facilitating cross-border payments and financial inclusion. The network's efficient and cost-effective transaction processing, along with its partnerships with financial institutions, has positioned it as a strong competitor in the cryptocurrency space. The Stellar network's commitment to sustainability and its use of an energy-efficient consensus algorithm have also resonated with environmentally conscious investors.

As the price of XLM continues to rise, analysts are closely monitoring its performance to determine the next potential resistance levels. According to the analyst's forecast, if the bullish momentum persists, the price could reach $1.59, which would represent a significant milestone for the cryptocurrency. However, it is important to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly based on various factors, including market sentiment, regulatory developments, and technological advancements. The recent price breakout of XLM has generated considerable excitement among investors and analysts, with many speculating about its next potential target. The Stellar network's focus on cross-border payments, financial inclusion, and technological advancements has positioned it as a strong contender in the cryptocurrency space. As the market continues to evolve, it will be interesting to see how XLM performs and whether it can reach the $1.59 target as predicted by analysts.