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- Profit-taking dragged XLM down over 23%, but it bounced back slightly near $0.437.
- Stablecoin growth and technical signals point to a possible rebound despite recent price weakness.
Stellar’s native token, XLM, saw a sharp price drop of over 23% from its monthly peak of $0.52, falling to a low of $0.40 on July 25. The fall was largely triggered by a wave of profit-taking among investors, who cashed out after the strong rally earlier in the month.
The dip was not isolated, as XRP from Ripple also faced similar price pressure. XLM later recovered slightly and was trading at $0.437 at the time of this report.
While the correction appears steep, data across multiple metrics shows the drop may not last long. Transaction volumes, network activity, and increased adoption of stablecoins all suggest there is enough momentum to push the token back up. Technical indicators also support this view, with the chart showing signs of a likely reversal.
XLM’s trading activity surged in July, pushing it past major players like Ethereum. Over the seven days leading up to July 24, transactions on the Stellar network jumped 22%, reaching 2.93 million. This figure is significant considering Ethereum processed 10 million over the same period.
Active wallet addresses also increased by 16%, totaling 208,000. Meanwhile, network fees climbed 99% to $73,000, which is especially notable given that Stellar’s fees are typically low.
Stablecoin Expansion Pushes XLM’s Usage Up
A key factor behind the market’s confidence in Stellar lies in the rise of stablecoin activity on the platform. Stellar’s stablecoin supply has grown by 15% in the last 30 days, totaling $184 million. During the same period, transaction volume surged by 40% to $1.8 billion, and stablecoin wallet addresses grew 33%, reaching 260,000.
The recent signing of the GENIUS Act by former President Donald Trump is also expected to bring more benefits to the Stellar network. The legislation could make Stellar one of the key platforms for handling USD Coin transactions. This potential increase in adoption may translate into stronger price support for XLM over the coming weeks.
From a technical angle, the daily chart offers reasons for short-term optimism. XLM recently formed a doji candlestick, often seen as an early sign of a bullish turnaround. This pattern suggests indecision in the market, where buyers may be preparing for a rebound.
The price has also held above both the 50-day and 25-day moving averages, signaling that the correction might be over.
July Closes With Best Monthly Growth Since Launch
On a broader view, Stellar looks set to finish July with the strongest monthly growth figures in its history. According to Cryptorank, Stellar is on track to close July with an 83% increase. This figure is nearly double its previous record of 44.6%, which was posted in July 2020.
The average July growth for Stellar is 11%, placing this month’s result at more than six times the norm.
In historical terms, the current quarter is also turning out to be the strongest for the token. The last time XLM came close was in 2016 and 2018, when it posted gains of 34.5% in each of those years. By comparison, July 2025 numbers show a steep improvement and indicate stronger market traction than ever before.
With rising network usage, increased stablecoin integration, and positive technical signals, the recent price drop appears to be more of a temporary setback. The current trading level is still about 15% below the year-to-date high, which remains the next price point to watch.
