Stellar XLM Crashes Under 0.20, Yet Activity Hits All-Time High-What Investors Now Must Know

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It is a truth universally acknowledged, that a market in possession of a fall must be in quest of a plausible explanation; yet there are signs, dear reader, that the faithful still abide within the precincts of the Stellar household.

Stellar (XLM) hath slipped beneath the threshold of $0.20. This retreat hath swept away the modest gains of the preceding year; yet there remain, in the eyes of many, cheerful indications that the network continues to command the regard of its steadier admirers.

Moreover, real-world assets and stablecoins may prove powerful engines for the further accumulation of XLM, as if they were footmen in a bustling ballroom, urging the dance of commerce onward.

Encouraging Symptoms for Stellar (XLM) in the Face of a Doleful Decline

Data from DefiLlama reveals that the quantity of XLM pledged within DeFi on the Stellar network hath attained a new all-time high in early February 2026, surpassing 900 million XLM. This achievement testifies to the growth of Stellar’s DeFi circle, even as XLM lingers below the year’s cherished support at $0.20.

Although Stellar’s TVL, measured in USD, now rests about $163 million, the brisk ascent of locked XLM underscores a robust confidence among the community and the patient investors in the network’s prospects for adoption.

The principal engines of this capital influx include Blend, a liquidity protocol permitting any gentleman or lady to fashion flexible lending markets on Stellar, and Aquarius Stellar, an AMM protocol and liquidity-management layer for the network. Collectively, these two protocols account for nearly 70% of total TVL.

Artemis data likewise reveals another noteworthy signal. Weekly active users across the Stellar realm have remained steady at about 60,000 for several weeks. No considerable decline has appeared despite the deep price downturn of XLM.

The chart indicates that in late 2024, when XLM fell below $0.10 before rising to $0.60, user activity persisted in stability and even trended upwards.

This suggests that Stellar’s patrons are not deserting the network, even as capital withdraws from the broader crypto market. Yet, the present dearth of fresh recruits may explain why XLM hath not yet made a full recovery.

Derivatives metrics also indicate that XLM may be entering a fresh consolidation zone. Open Interest volume hath fallen to its lowest ebb since November 2024, marking a notable retreat in leveraged exposure among traders.

As a consequence, strong volatility may be fading. XLM could now drift into a sideways phase, with diminished pressure from leveraged buying and selling. Such a state often permits a new accumulation zone to form.

Nevertheless, discerning the precise market bottom and timing a recovery remains a troublesome undertaking under present conditions.

Real-World Assets and Stablecoins Could Be Stellar’s Main Drivers in 2026

A report published last month stated that the total value of tokenized real-world assets on Stellar, excluding stablecoins, reached $1 billion at the start of this year.

Santiment, a crypto market analytics platform, also reports that Stellar ranks among the top four RWA projects by GitHub development activity since the beginning of the year.

“XLM isn’t a speculative add-on. It’s required for transactions, account operations, and network activity. As RWA volumes grow, usage of $XLM scales with it – not cyclically, but fundamentally,” said Scopuly, a Stellar wallet provider.

Stellar’s stablecoin market cap remains relatively modest at around $200 million. However, MoneyGram, a leader in international remittance and P2P payments, recently reaffirmed the stability of its USD-backed stablecoin instrument and continues testing it on Stellar.

USD-backed stablecoins can unlock access to stability in even the most volatile economies.

That’s why we piloted stablecoins in the MoneyGram® Money Transfers App in Colombia with @StellarOrg, @Crossmint and @USDC.

– MoneyGram (@MoneyGram) February 3, 2026

Accordingly, demand for RWAs and stablecoins could become the principal drivers of XLM accumulation, especially as the token faces strong selling pressure near current lows.

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2026-02-04 18:16