In October 2025, Stellar (XLM) fell 60% in minutes to a $0.20–$0.29 range, yet traders and investors now lean bullish. Charts, upcoming software upgrades and big-name partners suggest real money and real users could return. Product managers, compliance staff and custodians must decide whether the network remains safe and open for both institutions and retail clients.
Data report attributes the plunge to forced sales of leveraged bets and thin order books, wiping out weak holders while leaving the network intact. After the drop, the price clawed back to $0.39. Chart patterns such as falling wedges and bullish flags imply the downtrend exhausted, and the RSI sank to 30.91 (“oversold”), a level many view as a potential buy zone.
On the tech side, Protocol 23 aims to lift throughput to 5,000 transactions per second, a jump designed to cut congestion and fees.
Institutions add weight via new physical ETPs in Europe and partnerships with MoneyGram, Circle (USDC), Franklin Templeton, UNHCR, Flutterwave, TEMPO, IBM, Visa and Mastercard. These links position Stellar as a smooth pipe for USDC transfers, remittances and real‑world‑asset tokens.
The importance of institutional backing at Stellar
If Protocol 23 delivers speed and lower costs, remittance shops and stablecoin users may shift more volume onto the chain. ETP inflows from institutions should deepen order books and help shrink daily price swings.
Crises can still force leveraged longs to liquidate, so risk teams may need to reset exposure limits and keep extra cash on hand. Regulators will press custodians and exchanges to tighten KYC/AML checks and demonstrate sufficient liquid assets.
Key numbers and names underscore the setup: a 60% flash crash with a rebound to $0.39; Protocol 23 as the next big code upgrade; partners such as USDC and MoneyGram alongside a roster of banks and payments firms; and a mood shift as weak hands were flushed out and selective buyers stepped in.
Chart signals, the Protocol 23 rollout and institutional endorsements form the bullish case. The next test is the live release of Protocol 23; its success or failure will shape how custodians and investors judge network capacity and regulatory risk, while teams balance openness with safety for both institutional and retail users.
