Why Stellar (XLM) Price Is Still Struggling Despite Bullish Predictions

Many investors would have believed Stellar price would spike this year. After its big rally in late 2024, many analysts expected another surge in the XLM price but things turned out differently. 

The token has dropped over 35% since the start of the year and the latest market crash played a part. However, a stellar wallet page, Scopuly, on X, believes the real reason is how Stellar operates and grows. His view gives a clear picture of why the Stellar price still looks undervalued, even with growing optimism.

Scopuly sees Stellar as a project built on reliability. The network has run smoothly for years without any major issues or downtime. That kind of stability proves that Stellar can handle real financial transactions and large-scale use without breaking down. This reliability has earned trust from banks, developers, and institutions. 

While other blockchains chase headlines and constant upgrades, Stellar focuses on consistent performance. For things like banking and cross-border payments, steady and secure systems matter more than fast innovation. This quiet strength has built confidence over time, even if the XLM price hasn’t shown it yet.

Stellar’s Real-World Use Cases Give It Long-Term Value

Scopuly emphasizes that Stellar is not just a token, it is a working financial infrastructure. The network’s goal is to make global money movement faster and cheaper. It powers cross-border payments, remittances, and banking systems, helping financial institutions connect seamlessly.

This real-world focus sets Stellar apart from many speculative projects. Instead of promising future use, Stellar already supports active solutions in financial technology.

The Stellar Development Foundation has also maintained strong partnerships in this area, creating long-term demand for the network’s services. These practical applications may take time to reflect in market value, which explains why the Stellar token remains underpriced compared to its utility.

Why the Stellar Token Is Still Undervalued

Even with strong fundamentals, the XLM price hasn’t caught up. Scopuly believes this is because Stellar doesn’t focus much on marketing. The team doesn’t spend big on ads or hype. That makes it less visible compared to other tokens that push heavy promotions, even when they offer less value. This quiet approach slows down price growth, but it also keeps the project stable and prevents short-term bubbles.

He also notes that large investors are gradually accumulating Stellar tokens. These institutions tend to invest quietly and hold long-term positions. Their slow and steady buying can suppress price volatility in the short term, giving the impression of weakness even when long-term interest is strong.

Finally, the market’s timing plays a part. Crypto often moves in predictable cycles, from accumulation to rally and correction. Stellar appears to be in the accumulation phase, where prices stay calm while strong hands build positions. This calm phase usually comes before a stronger uptrend once market confidence returns.

Key Factors That Could Drive the Next XLM Price Growth

Scopuly outlines several drivers that could support Stellar’s future growth. One of the most promising is new partnerships. Large institutions are reportedly testing transactions on Stellar’s network. When these partnerships mature, transaction volumes could grow, increasing the need for XLM to facilitate operations.

Read Also: What’s Next for Sui Price After the Latest Crypto Market Collapse?

Another important factor is DeFi expansion through Soroban, Stellar’s smart contract platform. Soroban was built to host decentralized finance projects without high transaction costs. It offers developers a space to build financial applications efficiently. As more projects adopt Soroban, it could create steady demand for XLM, strengthening its position in the DeFi market.

The broader market cycle could also play a role. When Bitcoin’s price stabilizes, investors often move funds into alternative coins with strong fundamentals. Stellar fits that profile well. Once this rotation begins, the Stellar price could rise naturally as part of the wider altcoin recovery.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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