Stellar (XLM) Surges 25% Weekly on DeFi Growth, Upgrades

Stellar (XLM) has been garnering significant market attention due to its recent price surge, driven by a series of network upgrades, institutional support, and heightened investor engagement. Over the past week, XLM has experienced double-digit percentage gains, reflecting strong fundamentals and a decisive technical breakout that indicates a shift in market sentiment.

At the time of reporting, XLM was trading around $0.2924, marking a 15% increase for the day and over 25% for the week. This price rise is supported by on-chain metrics such as Total Value Locked (TVL) and stablecoin activity, which have reached new highs. These metrics suggest that the rally is not merely speculative but backed by real value being deployed across Stellar’s decentralized finance (DeFi) ecosystem.

A notable catalyst behind the recent upward movement in Stellar’s price is the surge in Total Value Locked within its DeFi ecosystem. Stellar’s TVL climbed to a record high of $108.88 million this week, indicating deeper engagement with XLM-based protocols. This growth in TVL is particularly significant as it highlights real value being deployed across Stellar’s DeFi tools. The increase in TVL during a midweek session, when crypto market activity typically slows, adds further weight to the strength of the move. Investors are now closely monitoring whether Stellar can sustain these gains as the network becomes more attractive to both developers and users. The TVL milestone reflects not just heightened interest but also rising confidence in Stellar’s infrastructure to support more complex and scalable applications.

Adding to the bullish sentiment, Stellar is currently in the process of rolling out Protocol 23, a network upgrade that introduces several high-impact changes to its smart contract capabilities. This includes the integration of Soroban parallel execution, reusable inter-ledger caching, and Merkle Tree support. These enhancements are expected to dramatically improve the efficiency and scalability of the network, enabling developers to build faster and more secure decentralized applications. The addition of Unified Asset Events (CAP-67) allows for better tracking of token movements, further expanding the utility of Stellar’s infrastructure. The mainnet vote for Protocol 23 is set for August 14, giving the network a clear timeline for potentially unlocking its next wave of DeFi, NFT, and RWA development. Traders are eyeing this upcoming vote as a key moment that could drive further price momentum if passed.

Beyond retail enthusiasm, institutional interest in Stellar is also on the rise. Recent disclosures reveal that financial heavyweights have already deployed over $500 million in the US. These deployments are not tests; they represent genuine investments flowing through Stellar’s infrastructure. As more institutions look to tokenize real-world assets, Stellar’s established capabilities and regulatory-forward approach could make it a go-to blockchain for traditional finance players. This growing institutional backing significantly strengthens the long-term outlook for XLM and lends credibility to its current price action. It also sets Stellar apart from many altcoins that lack similar fundamentals.

From a technical standpoint, XLM has broken out of a descending channel that has defined much of its 2025 price action. It has also reclaimed the 50-day simple moving average at $0.2597, suggesting a shift in structure and market bias. Indicators such as the RSI, which is hovering just below 60, and a bullish MACD crossover further confirm the strength of the current rally. Traders now target a short-term resistance at $0.284, with some forecasting a potential run toward $0.3079 if momentum continues. Longer-term projections are even more ambitious, with analysts suggesting a price target of $0.681 based on the current bullish structure. If the rally continues and the upcoming upgrade is approved, these targets may not be out of reach.