XLM Surges 97% Amid Stellar Network Growth and Upcoming Protocol 23 Upgrade

Generated by AI AgentCoin World
Monday, Aug 18, 2025 2:19 am ET1min read
XLM
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Aime RobotAime Summary

- Stellar Lumens (XLM) surged 97% to $0.43 by August 16, 2025, driven by rising network activity and anticipation for the Protocol 23 upgrade.

- The network surpassed 100 million smart contract transactions, 49% more active addresses, and $150M DeFi value locked, while cross-border stablecoin supply grew 10% to $222M.

- Protocol 23 (September 2025) will enable parallel transactions and Soroban optimization, aiming to boost scalability and XLM demand through faster operations.

- Technical analysis highlights a bullish double-bottom pattern and pennant formation, suggesting potential for $0.7270 if $0.6356 is breached, but risks reversal below $0.3350.

- Growing ecosystem utility in cross-border payments and DeFi, combined with the upgrade, strengthens investor confidence amid critical upcoming market developments.

Stellar Lumens (XLM) has gained 97% since July, reaching $0.43 on August 16, 2025, driven by growing network activity and anticipation for the upcoming Protocol 23 upgrade. The token’s rally coincides with Stellar’s ecosystem surpassing 100 million smart contract transactions and decentralized finance (DeFi) value locked hitting $150 million. Active addresses on the network have surged 49% in the past month to 493,774, while monthly transaction volume climbed to 81.85 million, marking an 11% increase [1].

The network’s utility is also expanding through its role in cross-border payments. Stablecoin supply on the

Stellar
network has grown to $222 million in the last 30 days, up 10% from the previous period. This development reinforces Stellar’s position as a low-cost, high-speed payment solution, attracting institutional and retail users alike [1].

Looking ahead, the Protocol 23 upgrade, scheduled for September 2025, is expected to introduce parallel transaction execution and enhanced Soroban smart contract optimization. These updates aim to improve the network’s scalability and performance, potentially increasing demand for XLM as developers and users benefit from faster and more efficient operations. Previous protocol upgrades have historically been associated with upward price trends, supporting the current optimism [1].

Technical analysis further strengthens the bullish case for XLM. The price has formed a double-bottom pattern at $0.2178, with a neckline at $0.3350. A breakout above $0.6356 would signal a continuation of the upward trend, potentially pushing the token toward $0.7270. However, a decline below $0.3350 could invalidate the pattern and lead to a deeper correction. Additionally, XLM has developed a bullish pennant pattern, with converging trend lines suggesting an imminent breakout [1].

Stellar’s growing ecosystem and improving technical indicators, combined with the imminent Protocol 23 upgrade, are reinforcing investor confidence. As the network continues to expand its utility in cross-border transactions and DeFi, XLM remains in focus for both traders and long-term holders. The coming weeks will be critical in determining whether the bullish momentum can be sustained amid evolving market conditions and technological developments [1].

Sources:

[1] AInvest - https://www.ainvest.com/news/xlm-price-rises-97-stellar-nears-100m-transactions-awaits-protocol-23-upgrade-2508/