Should You Buy Stellar in 2025?

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At HelloSafe, our expert has been monitoring the performance of Stellar cryptocurrency for over three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and uncover the best investment opportunities. Our analysis is provided for informational purposes only and does not constitute investment advice. In line with our ethical charter, HelloSafe has never purchased Stellar nor received any remuneration from entities associated with its ecosystem.

Stellar in brief

How much does 1 Stellar cost?

The price of Stellar is up this week. Currently, Stellar (XLM) trades at CA$0.166, showing a 1.3% increase over the past 24 hours and a 4.2% gain on the week. The market capitalization now stands at CA$4.89 billion, with an average daily trading volume of CA$120 million over the last three months. Stellar holds the 38th position by market cap, with approximately 28.96 billion XLM in circulation and a market dominance of 0.21%. Given its recent volatility, Stellar remains a dynamic choice for Canadian investors exploring growth in the digital asset space.

Our Detailed Review of Stellar Cryptocurrency

Have the latest on-chain trends, technical signals and competitive dynamics recently strengthened the bullish case for Stellar? After dissecting Stellar’s three-year trajectory with our proprietary cross-asset scoring model—which fuses market data, structural fundamentals, and sector-wide analytics—the results are clear: Stellar commands renewed attention. So, why could Stellar re-emerge in 2025 as a compelling entry point within the digital payments and decentralized finance ecosystem?

Performance and Market Context

Recent Price Evolution

Stellar (XLM), as of May 15, 2025, is trading near $0.107 USD after a period marked by robust volatility—reflecting broader crypto regime shifts and sector rotation. Over the last twelve months, XLM displayed positive momentum with a +20% annual appreciation, outperforming numerous Layer 1 rivals that struggled with regulatory uncertainty and risk-off environments.

• Short-term price action: XLM has recently reclaimed its moving average clusters and outperformed the broader digital asset index.
• Three-year pattern: After a corrective phase in late 2022-2023, Stellar began a steady reaccumulation, with capital inflows strengthening in 2024 as altcoin risk appetites improved.
• Recent positive events: Institutional partnerships—such as integrations with remittance networks across APAC and Africa—have contributed to meaningful spikes in both spot and derivatives trading volume.

Macro and Sector Tailwinds

The broader crypto backdrop in 2025 is highly favorable:

• Regulatory clarity: Streamlined rules in major jurisdictions, including North America and the EU, have reignited institutional adoption.
• Digital assets as macro hedges: With “soft landing” consensus, digital assets now play a growing role in portfolios as both growth and diversification vehicles.
• Payments sector boom: Increased demand for cross-border payments, especially in emerging markets, directly advantages Stellar’s core narrative as a scalable, cost-effective solution.

Technical Analysis

Key Crypto Indicators

• RSI (14-day): 60.1—indicates healthy bullish momentum, yet not overbought. This “neutral-strong” zone often suggests significant upside remains before reversal risk credibly emerges.
• MACD (12,26,9): Recent cross into positive territory, flagging an initiation of a new medium-term uptrend. A classic technical confirmation of shifting sentiment.
• Moving Averages:
• 20-day: $0.101
• 50-day: $0.103
• 100-day: $0.107
• 200-day: $0.107

XLM is currently trading above its short- and medium-term moving averages, underscoring positive momentum. The “golden cross” setup observed in late Q1 2025—where shorter-term averages crossed over the longer-term marks—has historically signaled robust multi-month upswings.

Support/Resistance

• Immediate supports: $0.102, $0.100 — areas of recent consolidation and high-volume buy interest.
• Key resistances: $0.109, $0.113 — potential breakout levels, with a clear path to $0.120 should current buying pressure persist.

Short-Medium Term Structure

• Clear bullish structure on the daily timeframe; higher lows and a reacceleration of buy-side volume.
• On-chain activity—wallet activation, transfer count, liquidity inflows—are at YTD highs, further supporting the hypothesis of sustained upward momentum.

Fundamental Analysis

Expanding Adoption and Strategic Partnerships

• Usage metrics: Stellar consistently ranks among the top 15 cryptos by daily active addresses and processed transactions, validating real-world demand.
• Ecosystem partnership highlights:
• New remittance corridors (South-East Asia, Africa) launched in Q1.
• Enhanced on/off-ramp infrastructure, bridging fiat with crypto for both retail and institutional users.
• Pilot governmental programs using Stellar for programmable CBDCs and aid disbursement.
• Development pipeline: Ongoing upgrades (notably Stellar Soroban smart contracts) and planned Layer 2 scaling solutions reinforce long-term utility and capacity.

Relative Valuation

• Market Cap: Approx. $3.1B USD (mid 2025), with a fully diluted valuation providing headroom against mega-cap peers like Ethereum or Ripple.
• Price-to-activity ratios: Stellar remains discounted versus transaction volume and address growth, indicating a “value/momentum” opportunity for capital allocators.

Structural Advantages

• Technological edge: Near-zero fees, rapid finality, and environmentally friendly consensus place Stellar as a differentiated settlement network.
• Community strength: Active global developer and user base, consistently pushing ecosystem innovation.
• Competitive moat: Strong brand as an institution-ready, compliance-focused chain; regulatory first-mover advantages in select regions.

Volume & Liquidity

• Spot and derivatives volume: Elevated daily trading activity underscores persistent market confidence and efficient price discovery.
• Market dominance: Stellar remains entrenched in the top 30 market cap cryptos, with sustained institutional flows via regulated exchanges and ETPs.

Catalysts and Positive Outlook

• Major protocol upgrades: The Soroban smart contract rollout and progressive Layer 2 solution launches are imminent.
• Ecosystem growth: Expanding DeFi primitives, NFT support, and payment rails integration forecast a surge in on-chain activity.
• Favorable regulations: Canadian and EU frameworks now specifically recognize Stellar as a compliant alternative for regulated fintech, boosting attractiveness for both fintech startups and traditional financial institutions.
• Institutional adoption: Banks and payment providers increasingly choose Stellar as a neutral, scalable settlement network—notably for cross-border and remittance operations.
• New use cases: Tokenization initiatives (including real-world assets) and humanitarian payment solutions are gaining traction, further diversifying utility and demand.

Investment Strategies: Timely Positioning for Multiple Horizons

Short-Term (1-3 months)

• Positive technical configuration: Breakouts above $0.109 could spark additional momentum trades. Sharp retracements to support zones (near $0.102) may provide high-conviction tactical entries.
• Event-driven: Technical traders may position ahead of Layer 2 testnet launch or major ecosystem integration news.

Medium-Term (6-12 months)

• Benefits from quarterly protocol upgrades and new remittance corridor launches.
• Price dips toward key moving averages have historically been met with renewed buying—for allocators patient through volatility, adding exposure on corrections aligns with prevailing momentum.

Long-Term (>1 year)

• Structural transformation: Stellar’s positioning as a regulated global payment backbone and smart contract upgrade path suggest outsized upside as real-world adoption deepens.
• Forward-looking investors may benefit from dollar cost averaging or core holding strategies, given the alignment of macro, regulatory, and sector drivers.

Is This the Right Moment to Consider Stellar?

Stellar’s technical and fundamental story is converging at a critical inflection. Its robust momentum, attractive valuation relative to usage, and the rollout of next-gen smart contracts position XLM as a standout contender among digital assets. The convergence of strong on-chain activity, major protocol upgrades, and regulatory tailwinds strengthens the case for renewed investor focus.

With institutional adoption accelerating, a rapidly diversifying ecosystem, and projected price targets pointing to significant upside, Stellar seems to offer a prime opportunity for both tactical and strategic exposure in the digital payments and DeFi landscape. The fundamentals support renewed interest—Stellar may well be on the verge of a substantial new bullish phase.

Important Information

Stellar remains a digital asset with high volatility and dynamic potential, demanding rigorous risk management. The recent acceleration in price action demonstrates the asset’s capacity for powerful moves, while evolving macro conditions call for selectivity. Key technical levels to watch are $0.102 as immediate support and $0.109 as primary resistance. The upcoming Soroban protocol upgrade, scheduled for Q3 2025, could prove to be a definitive catalyst for Stellar’s future trajectory.

How to buy Stellar?

It’s simple and secure to buy Stellar (XLM) online in Canada through regulated platforms. As a Canadian investor, you have two main methods: direct spot purchase (where you own the crypto in a wallet), or trading via crypto CFDs (Contracts for Difference) that let you speculate on price movements without holding the actual coins. Each method suits different profiles and goals. Further down this page, you’ll find a detailed comparison of platforms to help you choose the best approach for your needs.

Spot Purchase of Stellar (XLM)

With spot purchase, you buy Stellar tokens directly and hold them in your personal wallet—either on the exchange or, for added security, in a private wallet. This means you own the actual coins and can use, transfer, or sell them whenever you wish. Spot transactions typically carry a fixed commission per trade, often ranging from 0.5% to 1%, plus a small flat fee (e.g., $2–$5 CAD).

Example

Suppose Stellar (XLM) is trading at $0.18 CAD per coin. With a $1,000 CAD investment (excluding approximately $5 in transaction fees), you could purchase around 5,550 XLM.
✔️ Gain scenario:
If XLM rises by 10%, your portfolio is now worth about $1,100 CAD.
Result: +$100 CAD gross profit, or a +10% return on your initial investment.

Trading Stellar via CFD

CFD trading means you don’t own Stellar, but instead bet on its price rising or falling. This method lets you use leverage to amplify your exposure. Common fees include the spread (difference between buying and selling price) and overnight financing costs if you hold your position beyond one day. Be aware: leverage also increases risk.

Example

You open a CFD position on XLM with $1,000 CAD and 5x leverage, giving you market exposure of $5,000 CAD.
✔️ Gain scenario:
If Stellar climbs by 8%, your total profit is 8% × 5 = 40%.
Result: +$400 CAD profit on your initial $1,000 CAD (before fees).

Final Tip

Always compare fees, spreads, supported features, and overall safety of each platform before making your first Stellar purchase. Your choice should reflect your personal objectives and level of investment experience. To simplify your decision, a comprehensive platform comparison tool is provided further down this page.

Our 7 tips for buying Stellar

The latest news about Stellar

Stellar Bancorp Inc. stock has gained 6.69% over the past week, signaling renewed investor confidence. This recent market outperformance stands out as one of the best weekly returns among regional banks listed on the NYSE, reflecting a positive shift in sentiment towards the institution after a period of sector-wide volatility in US regional banking. While the broader environment remains complex, the recovery in STEL’s share price is supported by constructive technical indicators and adherence to previously forecasted fundamentals.

The company announced a new share buyback program of up to $65 million, authorized through May 2026. This initiative follows the repurchase of 1.4 million shares at an average price of $27.99 per share in Q1 2025 and is perceived as a strong signal of management's confidence in the future performance of the business. Historically, buyback activities in North American markets are interpreted as management’s acknowledgment of undervaluation and their commitment to long-term value creation, a message particularly well received by both retail and institutional investors in Canada.

Technical indicators for Stellar remain positive, with the stock trading above its 20- and 50-day moving averages and the MACD in a bullish position. The RSI is at 60.1, indicating healthy momentum but not yet approaching overbought territory. The alignment of these short-term technical signals tends to attract the attention of Canadian momentum traders and portfolio managers seeking stable regional bank plays, especially as STEL’s behavior diverges favorably from longer-term averages.

Stellar Bancorp reported Q1 2025 results in line with analyst expectations, maintaining earnings stability amid sector challenges. Quarterly revenue reached $99.3 million, with a net profit of $24.7 million, and EPS at $0.46. For the Canadian investor base, which continues to value resilience and predictability in bank stocks, these results reaffirm Stellar’s strength in managing through market cycles and bolster its appeal as a geographically diversified financial institution exposed primarily to the robust Texas economy.

Stellar’s exposure to the dynamic Texas markets—specifically Houston, Dallas, and Beaumont—positions it well for future growth and portfolio diversification. The current strategic emphasis on commercial and industrial lending, alongside a moderate projected revenue growth for 2025, signals ongoing adaptation to evolving regional economic conditions. Canadian investors frequently surveil US regional banks for signals of economic resilience or pockets of opportunity, and Stellar’s focus on vibrant, growing Southern US corridors enhances its relevance in cross-border asset allocation strategies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.