- Stellar (XLM) surged over 62% this week, driven by the upcoming Protocol 23 upgrade promising major network improvements and cost reductions.
- Bitcoin’s rally above $118,000 also boosted altcoins, fueling strong investor interest and trading volumes for XLM.
Stellar (XLM) has captured strong market attention this week with an impressive price surge driven by a combination of technical upgrades and a broad crypto market rally. Over the past seven days, XLM has jumped more than 62%, fueled by skyrocketing trading volumes and an eagerly awaited network enhancement.
Stellar’s Protocol 23 Upgrade Ignites Investor Interest
At the heart of Stellar’s price rally is the upcoming Protocol 23 upgrade, set for a mainnet vote on August 14, 2025. This upgrade promises to deliver significant improvements to the network’s performance and cost efficiency. By introducing parallel transaction execution and live state prioritization features, Stellar aims to reduce ledger costs by up to 40% while greatly enhancing scalability.
Stellar's protocol 23 is STACKED with core advancements*:
– MASSIVE runtime performance gains and cost reduction with soroban live state prioritization which enables soroban data caching and smart contract caching (cap62, cap65, cap66)
– Increased throughput and contention…— Tomer Weller (@tomerweller) January 23, 2025
These technical advances could open new doors for Stellar, particularly in decentralized finance (DeFi) and tokenized asset markets, where fast and affordable transactions are critical. Developers and investors alike are enthusiastic, viewing Protocol 23 as a comprehensive step forward that strengthens the network’s competitive edge.
Network Readiness and Institutional Confidence
Supporting this optimism, Stellar’s development team recently released Stellar Core v23.0.0-rc2, signaling the network’s preparedness for the upgrade. This release candidate marks a critical milestone, showing that new features have undergone rigorous testing and are ready for deployment.
RELEASE: stellar-core v23.0.0rc2
Release Notes: https://t.co/ROviq9MQTN
— Stellar Release (@StellarRelease) July 7, 2025
Following the announcement, institutional trading surged, breaking through key resistance levels. Enhancements such as smart contract caching and data optimization are expected to improve developer experience and foster a more efficient ecosystem.
Bitcoin’s Surge Sparks Wider Altcoin Rally Benefiting XLM
XLM’s rally also coincides with Bitcoin’s record-breaking push above $118,000. This milestone triggered an “alt season,” during which investors shift capital into promising altcoins. Stellar stands out due to its strong technical foundation and real-world use cases, especially in cross-border payments.
The convergence of Bitcoin’s bullish momentum, Stellar’s technical upgrades, and growing institutional interest has created ideal conditions for XLM’s price growth. This unique combination explains why Stellar continues to outperform many other altcoins amid the current market upswing.
Stellar’s recent performance highlights the importance of network innovation and broader market dynamics in shaping cryptocurrency valuations. With Protocol 23 on the horizon and Bitcoin leading the charge, XLM appears well-positioned for further gains in the weeks ahead.
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