Stellar (XLM) surges 70% ahead of Protocol 23 upgrade

Stellar (XLM) has surged by 70% over the past week, reaching a price of $0.40. This significant increase is driven by the anticipation of the upcoming Protocol 23 upgrade, which is set to be voted on August 14, 2025. The upgrade aims to enhance the network's speed and efficiency, particularly through improvements to the Soroban smart contract platform. This has sparked considerable interest and buying pressure, making XLM the top-performing asset among the 20 largest cryptocurrencies.

The price surge coincides with broader market momentum, with Bitcoin leading a rally across the cryptocurrency market. The 24-hour trading volume for XLM crossed $2.2 billion, indicating strong market participation. The upgrade is expected to improve transaction execution and state management, further boosting investor confidence in the Stellar ecosystem.

Technical analysis indicates that XLM has broken above a long-standing downtrend line, signaling a potential shift in market sentiment. Analysts predict that if the current resistance level of $0.681 is breached, the price could advance toward $1.2918. The altcoin is currently trading above the upper Bollinger Band, reflecting strong upward momentum. However, the Money Flow Index at 90.12 suggests overbought conditions, which could lead to a short-term pause or pullback if buying pressure slows.

Institutional activity has also contributed to the bullish sentiment surrounding XLM. Franklin Templeton recently tokenized $446 million in U.S. Treasuries on the Stellar blockchain, highlighting the growing trust in Stellar for asset tokenization. Additionally, the Total Value Locked (TVL) in decentralized finance on the Stellar network has increased by 22% in the past 24 hours, reaching $120.25 million. This on-chain growth further supports the current market momentum and investor confidence in the Stellar ecosystem.

The recent surge in XLM's price underscores the potential for altcoins to outperform major cryptocurrencies during periods of market excitement. The Stellar network's focus on cross-border payments and financial inclusion positions it as a strong contender in the cryptocurrency market. The upcoming upgrade is expected to further enhance its functionality and efficiency, attracting more users and investors. However, investors should remain cautious, as the cryptocurrency market is highly volatile and subject to significant price fluctuations. Thorough research and consideration of risk tolerance are essential before making any investment decisions.