Stellar (XLM) Surges 62.52% on Protocol 23 Upgrade and Bitcoin Rally

Stellar (XLM) has experienced a significant price surge over the past week, with the token's value increasing by 62.52%. This rally has been driven by several key factors, including the upcoming Protocol 23 upgrade, the release of Stellar Core v23.0.0-rc2, and the broader market recovery fueled by Bitcoin's surge above $118,000.

The Protocol 23 upgrade, scheduled for a mainnet vote on August 14, 2025, is a major catalyst for the price rally. This upgrade promises significant performance improvements, including parallel transaction execution and live state prioritization features. These enhancements are expected to reduce ledger costs by up to 40% and dramatically boost network scalability, positioning Stellar for increased adoption in decentralized finance (DeFi) applications and tokenized asset markets. The upgrade's comprehensive nature, highlighted by developer Tomer Weller, includes massive runtime performance gains and cost reduction capabilities through Soroban live state prioritization.

The Stellar Development Foundation's release of Stellar Core v23.0.0-rc2 on July 9 further signals the network's readiness for the upcoming upgrade. This release candidate demonstrates that developers have thoroughly tested the new features and consider them ready for implementation. Following this announcement, institutional trading volume surged dramatically, clearing several resistance levels as heavy trading activity flooded the market. The release includes smart contract caching and data optimization features, promising to enhance the developer experience significantly and create a unified events system for lighter, more consistent downstream operations.

Bitcoin's record-breaking surge above $118,000 has triggered a comprehensive altcoin rally across the crypto market. XLM benefits directly from this “alt season” momentum as capital rotates into tokens with clear utility and strong technical foundations. The broader market optimism has created favorable conditions for cryptocurrencies with solid use cases, such as Stellar's established partnerships and cross-border payment solutions. This convergence of factors explains why Stellar continues to outperform many other altcoins in the current market cycle.

In summary, the recent price surge of Stellar (XLM) can be attributed to the upcoming Protocol 23 upgrade, the release of Stellar Core v23.0.0-rc2, and the broader market recovery fueled by Bitcoin's surge. These factors have created a perfect storm for XLM's price appreciation, positioning it as an attractive option during market upswings. The technical upgrades and favorable market conditions have driven strong market confidence, pushing XLM up 62.52% over the past week.