- Stellar (XLM) surged nearly 300% in the past year, outpacing Bitcoin and Ethereum.
- User adoption rising: Accounts grew from 8.6M to 9.7M, with a record 264.6M payments processed in two months.
- Protocol 23 “Whisk” upgrade enhances scalability, efficiency, and developer tools.
- ETF potential: XLM shortlisted by Galaxy Digital among tokens eligible for expedited SEC approval.
- Institutional legitimacy: U.S. Commerce adoption adds credibility to Stellar’s blockchain utility.
Stellar’s Strong Growth Trajectory
Stellar’s (XLM) price has outperformed most major cryptocurrencies, soaring nearly 300% year-over-year, compared to Bitcoin’s 95.8% and Ethereum’s 84.7%. Despite a recent 12% pullback in August, several catalysts position XLM for a potential September rebound.
1. Rising Adoption and Network Growth
According to Stellar Expert, user adoption has accelerated, with the number of accounts growing from 8.6 million to 9.7 million in just a year. More importantly, Stellar processed 264.6 million payments between July and August, marking a two-year high.
This growth not only demonstrates adoption but also showcases network resilience, as successful transactions continue to rise while failures decline.
2. Protocol 23 “Whisk” Upgrade
Stellar’s recent upgrade, Protocol 23 (Whisk), was approved by validators on September 3. It introduces eight Core Advancement Proposals (CAPs), enabling:
- Parallel transaction execution
- Lower latency and transaction fees
- Improved developer tools
According to Stellar, “The Whisk changes will help the network stay fast, affordable, and fit-to-purpose as it scales.” This technical leap enhances scalability and efficiency, strengthening Stellar’s competitive edge.
3. XLM’s ETF Inclusion Potential
Galaxy Digital revealed that Stellar (XLM) is among the 10 tokens shortlisted for the SEC’s expedited ETF approval pathway, alongside Solana (SOL), Dogecoin (DOGE), and Cardano (ADA).
Also Read: XLM Caught in a Downtrend — What Needs to Break for a Rebound
With 91 ETF applications under SEC review, inclusion would open doors for institutional inflows, liquidity boosts, and mainstream adoption. Scopuly emphasized that an ETF could fuel XLM’s next major rally, especially given its growing role in the $24 billion RWA (real-world asset) market.
4. Institutional Adoption: U.S. Department of Commerce
A major endorsement came when the U.S. Department of Commerce began posting quarterly GDP data on Stellar’s blockchain. This provides an immutable and transparent record, reinforcing Stellar’s credibility and utility in real-world applications.
Such adoption from a government body validates Stellar’s technology and could drive further institutional interest and partnerships.
5. Favorable Market Setup
While broader crypto markets remain volatile, Stellar’s combination of:
- Rising adoption metrics
- Technical advancements
- Institutional legitimacy
- ETF potential
…all point to a strong outlook for September. XLM could be one of the standout performers in the coming weeks.
Stellar’s mix of adoption, innovation, and institutional traction makes it a compelling watch for September. If the ETF momentum materializes and market sentiment strengthens, XLM may extend its impressive growth streak.