Many altcoins are expected to rise so high this cycle, but Stellar (XLM) might be distinct and even an outperformer. Here we will look at some 3 reasons Stellar price could explode this cycle based on a post by Altcoin Buzz.
In a recent video from the Altcoin Buzz YouTube channel, analyst Cody (also known as Zio) shared his thoughts on why Stellar might finally be getting its breakout moment. While XLM has been under the radar, the price has already surged 360% in the last 12 months. Even though it’s no longer a top 15 coin by market cap, there’s growing interest in what’s happening behind the scenes.
Cody breaks down three major reasons the XLM price could still go much higher, and they’re not just speculation. These include upgrades to the tech stack, new waves of institutional adoption, and a real push to expand Stellar’s utility around the world.
Soroban Could Be a Game-Changer for Stellar
One of the most important things Cody highlights is Soroban. It’s Stellar’s smart contract platform, launched in 2024. This upgrade finally gave Stellar a way to support decentralized apps and DeFi tools, something it lacked before. The Stellar Development Foundation (SDF) also backed this shift with a $100 million adoption fund to attract developers.
With Soroban, the Stellar network can now support things like tokenized assets, wallets, bridges, and oracles. Developers can even launch their own tokens. And while XLM doesn’t support staking, Soroban tokens can. The platform is also scalable, and recent proposals have made it cheaper to use, with better CPU capacity for building complex apps.
This opens the door to things like real-world asset tokenization on the Stellar chain. Cody believes that if Soroban continues to improve, it could help the XLM price rise by unlocking a much larger ecosystem.
Big Institutions Are Betting on Stellar
Another major factor is the rise in institutional trust. Cody points to Franklin Templeton, a major investment firm, as a great example. They’ve already launched a tokenized money market fund called Benji on the Stellar network. As of now, Benji manages over $810 million in real-world asset investments, and more than half of that sits on Stellar, around $431 million.
That’s a huge amount of institutional activity, and it’s happening on-chain. Other players like IBM, Mastercard, Visa, Deloitte, and Paxos are also involved with Stellar in some way. Cody explains that these are the kinds of partnerships that could make the Stellar price far more resilient and valuable in the long term.
These companies trust Stellar’s low fees, fast settlement, and regulatory-friendly approach. That adds up to a strong case for XLM’s continued growth in a more mature and compliant crypto environment.
Stellar’s Ecosystem Is Expanding Fast
Cody also talks about how Stellar is expanding beyond its original remittance use case. For example, the network is now integrated with MoneyGram for global payments, and it has partnered with Circle to support USDC. With the GENIUS Act giving more clarity to U.S. stablecoins, Stellar’s alignment with Circle could prove to be a smart move.
More recently, PayPal joined the ecosystem by bringing its PYUSD stablecoin to Stellar. That opens access to 180 countries, instantly expanding the network’s reach.
At the same time, on-chain activity is rising. Nansen data shows active addresses grew from 65,000 to 80,000 in just one week. And when a chain’s usage increases this fast, it usually means something is brewing.
Stellar has also set clear targets. One goal is to break into the top 10 blockchains by total value locked (TVL) in DeFi. Right now, it’s ranked around 37th. But with Soroban now live, Cody believes the Stellar price could get a serious lift if that TVL figure climbs sharply.
Read Also: Why Holding 1,000 XRP Can Be Life-Changing, According to Analyst
What Could Happen to the XLM Price?
Stellar’s all-time high is around 90 cents, and according to Cody, that level is still very much in reach. If this bull market continues, he sees the XLM price pushing past $1.50, especially with the way things are lining up.
The current price still leaves plenty of room to grow. And while there are still concerns like centralization—since the Stellar Development Foundation holds 40% of all XLM, the positives might outweigh the risks. With a working network, global partners, and a real product in Soroban, XLM is better positioned than many other altcoins right now.
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