Stellar Quietly Sets New On-Chain Records in December — Is a Strong Price Rally Coming?

Core Insights - The Stellar (XLM) network is experiencing a significant increase in on-chain activity in December 2025, despite muted price movements, indicating potential positive fundamentals for a price recovery [1][2] On-Chain Activity - In December 2025, the number of operations on the Stellar network reached its highest level of the year, marking a notable increase in network activity [2] - Operations related to Payment or Path Payment indicate a strong flow of cash and assets, suggesting rising real-world demand and increased liquidity within the system [3] - Stellar Chain Transactions, which include asset transfers and smart-contract interactions, have shown a steady upward trend throughout the year, with a notable spike in December [4][5] Institutional Interest - US Bank, one of the largest commercial banks in the U.S., has begun testing stablecoin issuance on the Stellar network, which may attract retail interest and further boost network activity [5] Total Value Locked (TVL) - Stellar's Total Value Locked (TVL) reached an all-time high of over $179.18 million in December 2025, indicating that investors are locking more XLM into Stellar-based ecosystems despite the price not recovering [6][7] Price Action and Support Levels - XLM is currently at a critical support zone, with a weekly chart indicating a range of $0.24 to $0.195, which has held multiple times in previous market cycles [7][8] - Analysts view this support level as an accumulation opportunity for those anticipating a broader crypto recovery in late 2025 and early 2026, with a target range of $0.40 to $0.49 [8] Market Sentiment - There is a noted divergence between fundamental strength and price action, as seen with XRP, which has not rallied despite significant developments, suggesting that strategies like dollar-cost averaging or waiting for improved market sentiment may be prudent [9]