How Investors Stockpiled Stellar (XLM) Despite Falling Prices in October

Core Insights - The unexpected price decline of Stellar (XLM) in October has led to increased demand, indicating long-term investor confidence despite short-term price challenges [1][5] - The total value locked (TVL) on the Stellar chain has reached an all-time high of over 456 million XLM, reflecting strong investor faith in the ecosystem [2][3] - XLM's price has dropped by 50% since December, while the amount of XLM locked in DeFi protocols has increased more than fourfold, showcasing a divergence between price and utility [3][5] Investor Behavior - Significant accumulation of XLM was observed in October, with over 240 million XLM withdrawn from Binance, indicating a shift towards long-term holding or DeFi deployment [3][5] - The funding rate for XLM futures contracts has remained negative for the past two weeks, suggesting ongoing bearish sentiment among traders [5][6] - Some investors view XLM priced below $0.20 as an attractive entry point, anticipating a potential bull run similar to 2017 [7] Market Dynamics - The OI-weighted funding rate has been below zero since October 11, indicating traders are paying to maintain short positions, contributing to a pessimistic market sentiment [6] - Despite the negative funding rate, the increase in TVL and exchange reserves suggests long-term optimism among certain investors [6][9] - Stellar's recent upgrade to Protocol 24 and a 26.3% rise in the value of real-world assets on the platform to $638 million further support its long-term viability [9]