Stellar (XLM) 2025: From Payment Revolution to DeFi Ecosystem Transformation

Over 7 million active accounts, strategic partnerships with MoneyGram and Circle worldwide, transaction fees of less than 0.00001 XLM—less than a penny – behind these numbers, Stellar is quietly reshaping the global payments landscape.

But what challenges does this veteran blockchain face by 2025? Can the launch of Soroban smart contracts open new opportunities? As an investment target, is XLM overvalued or undervalued? We analyze these questions through the latest data and market performance.

What exactly is Stellar trying to solve?

Stellar is not just another trend-chasing blockchain. Unlike Bitcoin, which focuses on its own currency attributes, or Ethereum, which aims to become a universal computing platform, Stellar’s positioning is very clear: an open value transfer network.

Whether it’s USD, EUR, Bitcoin, or any digital asset, Stellar can facilitate cross-border movement of these values. In other words, it’s not creating a new financial universe but building a bridge between the existing financial system and blockchain.

On-chain ecosystem data speaks: over 206,000 assets, $30 billion in transaction volume

Raw data best illustrates the point. Over 206,589 assets have been created on the Stellar network, which is not just a number but reflects the ecosystem’s activity. From stablecoins to niche projects, its openness attracts various issuers.

Key value indicators are:

• 317 billion payment transactions – not hypothetical, but real remittances, merchant payments, transfers on the chain
• Decentralized exchange(DEX) with over 4.93 billion transactions, with total trading volume surpassing $30 billion

For investors, these two data points are crucial: first, Stellar is not just a paper concept but an operational infrastructure in real financial scenarios; second, these transaction volumes directly reflect the actual fund flow, impacting liquidity and price support.

Nine-year growth curve: the overlooked steady performer

Most altcoins follow a “rocket up – crash” rollercoaster. Stellar is different; it shows a steady, long-term, organic growth trajectory.

From a quiet 2016 to explosive growth between 2018-2020, then a brief plateau in 2021, Stellar’s account count has maintained continuous, stable positive growth since 2021. Such robustness is rare in the crypto space.

Cooling innovation, deepening applications: Stellar enters an integration phase

An interesting phenomenon has emerged: the creation of new assets declined significantly after 2022, but the number of Trustline(asset holdings) continues to grow, albeit at a slower pace.

What does this indicate? Stellar is no longer just a “testbed” but has become a “production site”. The speculative frenzy has faded, leaving behind real, sustainable applications. The network is transitioning from broad experimentation to precise usage – fewer projects, but each more focused and pragmatic.

From an investment perspective, this is good news: it signals Stellar’s upgrade from a “hype tool” to an “infrastructure”.

A decade in review: from Ripple fork to global payment network

In 2014, Jed McCaleb (Ripple co-founder) and Joyce Kim co-founded Stellar with a clear mission – to serve those excluded by traditional finance.

Key milestones:

Technical core: why is Stellar so cheap and fast?

Talking about Stellar’s technology, many get intimidated by complex terminology. But the core is quite simple.

Consensus mechanism: federated trust rather than central authority

Stellar uses Stellar Consensus Protocol(SCP), which does not rely on mining. Each node independently chooses which other nodes to trust; these trust circles interweave, ultimately reaching network consensus.

Simple analogy: it’s not one person’s say, but a group of mutually trusting nodes reaching agreement through overlapping trust relationships. Even if some nodes fail or are attacked, the network remains stable.

Anchor: bridge to real finance

If Stellar is a road, then Anchors are gas stations. Tempo, Cowrie, MoneyGram, and others act as Anchors, whose main functions are:

You deposit 10 euros → Anchor issues 10 euro tokens → these tokens circulate on Stellar → finally exchanged for local currency

Anchors handle KYC, fund custody, and final settlement, while Stellar manages the transfer logic. This synergy cuts international remittance costs from 10-15% down to just $0.001.

Speed and cost: 3-5 seconds per transaction, less than a penny

A Stellar transaction typically takes only 3-5 seconds from initiation to final confirmation. The fee is 0.00001 XLM (about one ten-thousandth of a dollar).

This isn’t an arbitrary figure but a carefully designed spam prevention mechanism – so cheap it can’t be used as an attack vector, yet enough to prevent malicious actors from flooding the network with millions of empty transactions.

In other words: you can complete 100,000 transactions with just 1 XLM. Such efficiency is unmatched by traditional banking systems.

The role of XLM: the “universal language” of the network

If Stellar is a platform, then XLM is its “native language”. Unlike other assets, XLM has no central issuer; it is generated directly through the consensus protocol.

Why no mining or staking?

Ethereum relies on miners for security, Solana on stakers for rewards. Stellar’s SCP does not need these. Network security comes from the consensus mechanism itself, not economic incentives.

This leads to two important consequences:

1. Fixed total supply of XLM – no continuous new issuance, no dilution risk
2. No inflation pressure – long-term holders don’t need to worry about token devaluation

Compared to other blockchains, this is very friendly to long-term investors.

Real-world examples: how Stellar is changing the financial ecosystem

Cross-border remittances: happening every second

A user in the US sends money to Nigeria via MoneyGram:

• USD deposit → converted into USDC(Stellar version) → crosses the Atlantic in 3 seconds → exchanged into local Naira → withdrawn

This process traditionally takes 3-5 days with fees up to 10-15%. Stellar makes it happen in 3 seconds with less than a penny fee.

Just one partner, MoneyGram, has over 300,000 outlets. Tempo in Europe, Cowrie in Africa, Coins.ph in Southeast Asia – Stellar is quietly transforming the global remittance market.

Financial inclusion: a way out for 1.4 billion unbanked

About 1.4 billion people worldwide lack formal bank accounts. Their options are often harsh: excluded from finance or exploited by predatory services.

Stellar changes this. A cheap smartphone + simple wallet allows receiving, holding, and transferring digital assets. In Venezuela, Nigeria, Argentina, people use stablecoins on Stellar to hedge against hyperinflation.

Humanitarian aid: transparent relief channels

In 2022, UNHCR distributed emergency aid to Ukrainian refugees via Stellar. Over $10 million was sent to more than 5,000 beneficiaries, with all transactions traceable on-chain.

Compared to traditional aid channels (which often see 30-50% swallowed by intermediaries), Stellar ensures aid reaches beneficiaries directly.

Stellar vs Ripple vs Ethereum: each has its stage

Market performance comparison: XRP surged 407% in the past 12 months, Stellar up 313% – Ripple seems stronger. But in absolute price terms, XRP is currently around €2.80, XLM around €0.21 (latest data).

Both rebounded over 1500% from March 2020 lows, but Ripple relies on institutional clients, while Stellar’s advantage lies in retail and developing country penetration.

Outlook for 2025 and beyond: Stellar’s prognosis

Short-term view (2025)

Stellar’s current performance is in a recovery mode:

• Fear & Greed index at “Greed” – market risk appetite is high
• 20/30-day moving averages trending upward – recent upward trend
• Outperforming BTC with +153% gains – significant excess returns

Based on technical and fundamental analysis, XLM could reach €0.48 (+126%) in 2025, with volatility between €0.12 and €0.70.

Mid-term outlook (2026)

2026 is expected to be more aggressive, with target prices around €0.84 (+300%), and in extreme scenarios possibly €1.32.

Long-term (to 2030)

The most attractive is the 3-5 year cycle forecast. If Stellar continues deepening in asset tokenization and international payment infrastructure, by 2030 XLM could reach €2.20 (+950%).

Optimistic scenarios even project €3.96 (+1785%). Even in pessimistic scenarios, €0.22 remains well above historical lows.

This presents asymmetric risk-reward for patient investors – limited downside, huge upside potential.

How to participate in Stellar investment

Direct purchase of XLM

Almost all major exchanges support XLM trading. After buying, you can choose to:

• Keep on the exchange (easy trading but platform risk)
• Transfer to a self-custody wallet (official Stellar wallet, Ledger, etc.)

Leverage trading and futures

For aggressive investors, platforms like Mitrade offer CFD or futures trading with up to 10x leverage. A $0.05 move can turn into $0.5 profit with leverage – but risks are amplified.

Indirect participation: ETPs and funds

In Europe, there are exchange-traded products(ETP) tracking XLM, such as 21Shares Stellar ETP(WKN A3GRTM). This approach suits traditional investors but involves management fees.

A realistic conclusion

Stellar won’t make you rich overnight like some new coins, nor create illusions like pyramid schemes. Its work is quite “boring” – running a properly functioning payment network, making money flow faster and cheaper.

It’s precisely this “boring” nature that makes Stellar one of the few blockchain projects truly changing the real financial world.

By 2025, Stellar’s story will no longer be “Will it succeed,” but “To what extent will it succeed.” Whether as a long-term asset or short-term trading, XLM deserves attention – but only if you understand the real problems it solves, not gambling.

FAQs

Has Stellar been hacked all these years?
Exactly. Since its inception in 2014, Stellar has not experienced major security incidents. The SCP consensus mechanism relies on federated trust, so a single point of failure won’t crash the network. In contrast, Ripple faced SEC lawsuits, Terra collapsed, while Stellar remains quietly stable.

Where is Stellar actually used in these countries?
In over 130 countries. Remittances in Nigeria, digital funds in the US, MoneyGram’s 300,000 outlets worldwide, Ukraine’s CBDC pilot – these are not lab experiments but operational systems.

Why is XLM necessary, given so many stablecoins on Stellar?
Good question. Stablecoins are suitable for exchanging equivalent values, but XLM’s role is to “bridge” less liquid currency pairs. For example, if you want to swap Philippine pesos to Nigerian naira without direct liquidity, XLM acts as an intermediary. That’s why XLM, though invisible, is indispensable.

Why does every Stellar account need at least 1 XLM?
To prevent abuse. Without this threshold, attackers could create millions of empty accounts to inflate the blockchain. 1 XLM( now costs just a few cents) enough to serve as a cost barrier, preventing malicious spam while not hindering legitimate use.