Stellar (XLM) Drops Below $0.20, But On-Chain Activity Hits New Highs

Stellar (XLM) has fallen below $0.20. This move has erased all of the recovery it achieved last year. However, several positive signals suggest that many investors are still staying within the ecosystem.

In addition, real-world assets (RWA) and stablecoins could become key drivers of further XLM accumulation.

Positive Signs for Stellar (XLM) Despite the Sharp Price Drop

Data from DefiLlama shows that the amount of XLM locked in DeFi protocols on the Stellar network reached a new all-time high in early February 2026. It surpassed 900 million XLM.

This milestone reflects the growth of Stellar’s DeFi ecosystem. It comes even as XLM continues to fall below the year’s key support level at $0.20.

Although Stellar’s TVL, measured in USD, currently sits around $163 million, the sharp rise in locked XLM underscores strong confidence from the community and long-term investors in the network’s adoption potential.

The main protocols driving this capital inflow include Blend, a liquidity protocol that allows anyone to create flexible lending markets on Stellar, and Aquarius Stellar, an AMM protocol and liquidity management layer for the network. Together, these two protocols account for nearly 70% of total TVL.

Artemis data also reveals another notable signal. Weekly active users across the Stellar ecosystem have remained steady at around 60,000 over the past few weeks. No significant decline has appeared despite the deep XLM price dump.

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

This suggests that Stellar users are not abandoning the network, even as capital continues to exit the broader crypto market. However, the current lack of new users may explain why XLM has not yet recovered.

Derivatives metrics also indicate that XLM could be entering a new consolidation zone. Open Interest volume has dropped to its lowest level since November 2024. This decline reflects a sharp reduction in leveraged exposure among traders.

As a result, strong volatility may be fading. XLM could now be moving into a sideways phase, with less leveraged buying and selling pressure. This environment often allows a new accumulation zone to form.

However, identifying the exact market bottom and timing a recovery remains challenging under current market 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 reported 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, one of the world’s leading companies in international remittance services and P2P payments, recently reaffirmed the stability of its USD-backed stablecoin instrument. The firm continues testing it on Stellar.

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

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