Stellar’s "Whisk" Upgrade Unifies Data, Spools Network Speed

Stellar's recent protocol upgrade, known as Protocol 23 or "Whisk," has introduced significant improvements to the network’s scalability and developer experience, with immediate implications for network performance. The upgrade, the 23rd in a series of Stellar protocol versions, marks the introduction of a naming convention inspired by everyday tools, a move aimed at making protocol versions more memorable and relatable. Protocol 23 is named after the 23rd letter of the alphabet, "W," and is likened to the functionality of a whisk, which simplifies and streamlines complex processes. This naming strategy, akin to Ethereum’s "Shanghai" or Android’s "Baklava," aims to foster a shared language for discussing protocol upgrades and progress within the Stellar ecosystem [2].

One of the key enhancements introduced by Protocol 23 is "Unified Events," which standardizes the formatting and presentation of transaction event data. Previously, Stellar operations—both traditional and smart contract-based—generated different data formats, complicating data integration for developers and services. By unifying these event formats at the core level, Protocol 23 eliminates the need for developers to maintain separate systems to handle different data types. This streamlining is expected to significantly reduce development complexity and enhance the overall efficiency of building applications on the Stellar network [2].

Another major improvement in Protocol 23 is the introduction of "Parallel Transaction Processing." Prior to this upgrade, Stellar Core processed transactions sequentially, which limited the network's ability to handle high transaction volumes efficiently. With parallel processing, Stellar Core can now validate one set of transactions while simultaneously gathering the next, thereby reducing the time between transaction cycles. This enhancement is expected to increase the network’s throughput, reduce latency, and support lower fees—critical factors for maintaining Stellar’s position as a fast and cost-effective blockchain solution for financial applications and services [2].

The implementation of Protocol 23 is closely tied to recent market activity surrounding the Stellar Lumens (XLM) token. In the week leading up to the upgrade, XLM experienced a 3% price increase, trading between $0.35 and $0.37. The token faced notable resistance at $0.37, where it encountered two rejection points, but trading volumes above the daily average of 31.2 million tokens indicated sustained institutional interest. South Korean exchanges Bithumb and Upbit temporarily halted XLM deposits and withdrawals in preparation for the protocol upgrade, highlighting the operational impact of the change. These developments underscore the correlation between network upgrades and market sentiment, as investors and institutions align with Stellar’s strategic roadmap [4].

Looking ahead, analysts have noted that Stellar’s fundamentals are strengthening, with growing adoption of real-world assets (RWA) now valued at over $460 million on the network. Protocol 23 is expected to further enhance Stellar’s role in institutional cross-border payments and real-world asset tokenization, providing a strong narrative for a potential breakout. Technical indicators show mixed signals, with some suggesting near-term downside risks while others highlight oversold conditions and historical September strength. A decisive close above $0.40 with strong volume could open the door for XLM to challenge the $0.45 resistance, with $0.64 identified as a potential long-term target. However, failure to push through resistance could lead to a pullback toward $0.32 [5].

In addition to price dynamics, Stellar has seen early signs of recovery in derivatives markets, with positive funding rates and growing network usage. For instance, Canadian digital bank VersaBank has launched a pilot program using Stellar's blockchain to test its tokenized deposit, USDVB, in the U.S. This development adds to the growing utility of the Stellar network, as institutions explore more compliant alternatives to stablecoins. With momentum building and fundamentals aligning, XLM’s latest attempt to break through $0.45 could serve as a catalyst for a broader bullish trend, potentially pushing the token toward $1, according to market observers [6].

Source:

[1] Stellar Ecosystem Projects (https://stellar.org/ecosystem)

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

[3] Stellar (XLM) Protocol 23 'Whisk' Enhances Network Scalability (https://blockchain.news/news/stellar-protocol-23-whisk-enhances-network-scalability)

[4] Stellar Lumens Gains 3% Ahead of Network Infrastructure Upgrade (https://finance.yahoo.com/news/stellar-lumens-gains-3-ahead-164444827.html)

[5] XLM Battles $0.45 Resistance Again: Is This the Breakout We’ve Been Waiting For? (https://www.mitrade.com/insights/news/live-news/article-3-1085969-20250901)

[6] Stellar Price Forecast: XLM shows early signs of recovery (https://www.fxstreet.com/cryptocurrencies/news/stellar-price-forecast-xlm-shows-early-signs-of-recovery-202508280451)