Majority of Circulating Stellar Lumens (XLM) is Controlled by Top 10 Wallets, Raising Worries
The XLM Surge: Stellar's Controversial Giant Leap
In the cryptosphere of 2025, Stellar (XLM)—known for swift, low-cost cross-border transactions—has caught the eye of both retail and institutional investors. Yet, the distributed supply of XLM and its potential real-world asset (RWA) applications present complications.
XLM Distribution and Soaring Exchange Balances: The Heart of the Matter
Stellar's central issue lies in the concentration of its XLM supply. As reported by Flipside Crypto, the top 10 XLM wallets boast a whopping 25 billion XLM, accounting for approximately 80% of the total circulating supply (30.9 billion XLM). This concentration raises questions regarding the network's decentralization. If a few key players control such a large amount of tokens, they could significantly sway the market. On the flip side, around 90% of XLM holders wield less than 100 XLM, yielding minimal sway over the market and susceptibility to volatility risks.
Binance’s rising XLM balances, detailed by stellar.expert, offer another piece of the puzzle. From 180 million XLM in late 2023 to 1 billion XLM by the beginning of 2025, the upward trend suggests escalating trading interest, yet also signals potential sell pressure if negative news arises.
XLM: A Cash Cow in the Making?
Investors argue that the burgeoning circulating supply could augur well for growing adoption. An XLM aficionado shared his view:
"This isn't a random distribution - it's a deliberate strategy ... Supply growth is calculated and controlled while adoption skyrockets."
This opinion is underscored by Stellar’s on-chain data. With an increase in active accounts from 7.2 million in 2023 to 9.5 million by May 2025, an average of 5,000 new wallet addresses being added daily, the continued demand helps handle the circulating XLM.
RWA and XLM: A Powerful Pairing in Crypto
Stellar is positioning itself in the real-world asset (RWA) sector, which is bursting with buzz in the crypto universe. Currently, Stellar stands as the third-largest protocol in RWA market capitalization, superseded only by Ethereum and ZKsync Era. Key players such as the Franklin Templeton OnChain US Government Money Fund ($497 million) and Circle's USDC stablecoin ($345 million) help establish Stellar's RWA ecosystem.
The total value of RWAs on Stellar has skyrocketed nearly 84% in 2025, reaching over $500 million by May, reflecting Stellar's growing allure for RWA tokenization.
Join the buzz with eToro, Plus500, Arkham, Moonacy, and Uphold as you dive into Stellar's journey!
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- The central issue with Stellar (XLM) lies in the concentration of its XLM supply, with the top 10 wallets holding around 80% of the total circulating supply.
- Binance's rising XLM balances suggest escalating trading interest, yet also signal potential sell pressure if negative news arises.
- Investors argue that the burgeoning circulating supply of XLM could augur well for growing adoption.
- With an increase in active accounts and the addition of new wallet addresses daily, the demand for XLM helps handle the circulating supply.
- Stellar is positioning itself in the real-world asset (RWA) sector and stands as the third-largest protocol in RWA market capitalization.
- Key players such as Franklin Templeton OnChain US Government Money Fund and Circle's USDC stablecoin help establish Stellar's RWA ecosystem.
- The total value of RWAs on Stellar has skyrocketed nearly 84% in 2025, reaching over $500 million by May.
- While the distribution of XLM raises questions regarding network decentralization, around 90% of XLM holders hold minimal sway over the market and are susceptible to volatility risks.
- Investors looking to explore XLM can consider platforms like eToro, Plus500, Arkham, Moonacy, and Uphold.
- In 2025, with a focus on technology, finance, and investing, Stellar's journey presents a fascinating insight into the future of the cryptocurrency market and blockchain technology.
