"Stellar's Upgrade Fails to Stir Market Optimism as XLM Hits Key Support"

The Stellar (XLM) network recently implemented Protocol 23, known as the Whisk upgrade, which introduced significant improvements aimed at enhancing scalability and developer experience on the blockchain. This protocol, named after an everyday kitchen tool, is part of a broader initiative by the Stellar Development Foundation to simplify and streamline the network’s operations. The Whisk protocol consolidates event data from both classic Stellar operations and smart contracts into a unified format, reducing the complexity developers face when integrating with the network. Additionally, the upgrade introduces parallel transaction processing, allowing the Stellar Core to validate transactions simultaneously rather than sequentially. This enhancement is expected to boost transaction throughput, reduce confirmation times, and maintain low fees, all of which are critical for supporting the growing number of decentralized applications and financial services on the network [1].

Despite these technical advancements, the XLM token experienced a notable price drop following the rollout of the Protocol 23 upgrade. From September 3 at 15:00 to September 4 at 14:00, the price of XLM fell by 2.72%, sliding from $0.368 to $0.358. The decline reflects broader market pressures, with sellers consistently rejecting attempts to push the price above the $0.362 resistance level. The failure of the upgrade to serve as a bullish catalyst highlights the challenges the cryptocurrency faces in the current macroeconomic climate, where broader risk-off sentiment and geopolitical uncertainties are weighing on investor appetite [2].

Analysts have noted that the recent liquidation events further underscore the vulnerability of XLM traders. On September 2 alone, institutional liquidations totaling approximately $192,000 occurred as the token slipped from the $0.40–$0.45 range, setting the stage for the ongoing bearish trend. This decline has positioned XLM near critical support levels at $0.32–$0.30, a price range that may determine the token’s near-term trajectory. If buyers fail to step in at this level, the downward momentum could continue, pushing the token toward lower levels of demand [2].

While the technical improvements of the Whisk protocol are expected to benefit the Stellar network in the long term, their immediate impact on the token’s price has been muted. Developers and ecosystem participants have welcomed the upgrade as a step toward future-proofing the network, but market participants remain cautious. The upgrade’s focus on scalability and efficiency is aligned with the growing adoption of decentralized finance (DeFi) and cross-border payment solutions on the Stellar network. However, the current bearish market environment means that any positive developments are being overshadowed by broader macroeconomic headwinds [1].

Looking ahead, the Stellar network’s ability to attract new users and maintain a strong developer ecosystem will be key to its long-term success. The Whisk protocol lays the groundwork for future upgrades, including the next protocol, which will likely be named with a tool starting with the letter “X.” Continued innovation in the Stellar ecosystem, paired with improved market conditions, may eventually drive renewed interest in XLM and help the token regain upward momentum. For now, however, investors and developers alike are closely watching how the network performs in the face of ongoing market volatility [1].

Source:

[1] Introducing Whisk, Stellar Protocol 23 (https://stellar.org/blog/developers/introducing-whisk-stellar-protocol-23)

[2] Stellar Plunges 3% as Protocol 23 Upgrade Fails to Spark Rally (https://www.coindesk.com/markets/2025/09/04/stellar-plunges-3-as-protocol-23-upgrade-fails-to-spark-rally)