Stellar XLM emerges as a key player in real asset tokenization through institutional partnerships disrupting traditional finance. With Protocol 23’s promise of 5000 transactions per second, investors speculate if XLM will breach the elusive $1 mark. Amidst bearish technical analysis and promising fundamentals, 2025 could prove pivotal for this often underestimated altcoin.
Written by Simon Dumoulin
Translated on November 29, 2025 at 10:22 by Simon Dumoulin
The Protocol 23 upgrade represents the major technical catalyst for 2025. This evolution introduces parallel execution of Soroban smart contracts, with an ambitious target of 5,000 TPS. To put this in context, Ethereum currently processes between 15 and 30 TPS on its main layer. This scalability would multiply the network’s current capabilities by more than 150 times.
The expected impact goes beyond raw performance. Transaction fees are expected to drop, making Stellar competitive against Ethereum Layer 2s. This speed-cost combination could attract DeFi developers and institutional tokenization projects. JP Morgan notably highlights the persistent lack of truly efficient cross-border payment solutions at a global scale.
Now, cross-border payments have historically been Stellar‘s specialty. With anticipated growth in this sector through 2027, the technical timing appears optimal. The question now is whether execution will live up to the whitepaper’s promises.
I keep seeing this take: “Stellar is 2017 tech.”
Let me show you what actually happened while people weren’t paying attention:
Protocol 23: Multi-threaded execution (shipped Sept 2025)
Protocol 25 X-Ray: ZK infrastructure (launching Jan 2026)
Soroban: 1M daily smart contract… pic.twitter.com/kup8Xa3Rse
Technical forecasts position XLM’s maximum price at €1.29 by the end of 2025, with a potential floor at €0.65 and an average around €0.97. These projections are based on assumptions of a marked altseason and rising institutional adoption. In the absence of a global bullish momentum, the bearish scenario would bring the token back toward its current support levels.
For 2026-2027, models anticipate progression toward €1.76 then €2.58, crossing several psychological thresholds. This trajectory would imply average annual growth of 35% to 45%, consistent with the expansion of the RWA market. The years 2028-2030 project more ambitious peaks, culminating at €6.19 by the end of the decade.
These figures contrast with other sources: Changelly anticipates €1.07 in 2030, Binance predicts €0.53, and CoinCodex suggests €0.68. These divergences reflect crypto market uncertainty and the difficulty of modeling institutional adoption. It’s worth noting that Stellar reached its ATH at €0.94 in January 2018. Reaching €1 in 2025 would therefore represent a new record, requiring a market cap multiplied by 4, given the circulating supply of 32.3 billion tokens and a current market cap of approximately €8.1 billion.
The comparison with Ripple (XRP) is inevitable. Both projects share a common origin through Jed McCaleb, co-founder of Ripple before launching Stellar in 2014. However, their philosophies have diverged: Ripple focuses on adoption by financial institutions and central banks, with a more centralized structure, while Stellar prioritizes financial inclusion, decentralized access, and emerging markets.
This difference is also reflected in their performance. Ripple benefits from superior liquidity and a strong institutional presence despite its disputes with the SEC. Stellar offers reduced fees and more open governance, but struggles to generate the same level of adoption. For peer-to-peer payments, Stellar has advantages; for enterprise solutions and liquidity, Ripple remains dominant.
Investors should remember that these two assets are not interchangeable. Their use cases partially overlap, but their market dynamics are distinct. XLM will not necessarily follow XRP’s movements, even though a macro correlation exists at the overall crypto market level.
Take advantage of Black Friday to secure your crypto with a Ledger: 50% off and up to $90 free, an offer available for a limited time.
Related articles:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
© InvestX 2025
source
