Stellar (XLM) has emerged as a key player in the real-world asset (RWA) tokenization space, ranking third by market value. However, its growth is shadowed by concerns over supply centralization, with 80% of XLM held by just 10 wallets.
Key Highlights
- RWA Leadership: Stellar hosts $500M+ in tokenized assets, including Franklin Templeton’s OnChain fund and USDC.
- Exchange Balances: Binance-held XLM surged to 1 billion, signaling trading interest but potential sell pressure.
- User Growth: 9.5M active wallets, adding ~5,000 daily, reflect adoption beyond speculation.
XLM Supply: A Centralization Risk
Top Wallets Dominate Supply
- 10 wallets control 250B XLM (80% of circulating supply).
- Retail holdings fragmented: 90% of addresses own <100 XLM, limiting market influence.
👉 Why XLM’s distribution could threaten price stability
Source: CoinMarketCap
Implications:
- Volatility risk: Large sell-offs by "whales" could trigger sharp corrections.
- Network resilience: Questions linger over decentralization.
RWA Tokenization Fuels Adoption
Institutional Traction
- $5B+ RWA value (84% growth since January).
Top integrations:
- Franklin Templeton’s $497M fund.
- $345M USDC on Stellar.
Why Stellar?
- Lower costs/faster transactions vs. Ethereum.
- Use case: Ideal for tokenized bonds, funds, and stablecoins.
On-Chain Growth Metrics
User Expansion
- 950M active wallets (up from 720M in 2023).
- Daily growth: ~5,000 addresses/day.
Demand Drivers:
- RWA partnerships.
- Retail participation in stablecoin transactions.
Market Sentiment: Divided Views
Pros
- Strong RWA pipeline.
- Rising active addresses.
Cons
- Supply concentration risks.
- Potential whale-driven sell pressure.
Investor Takeaway:
"Stellar’s utility in RWAs is compelling, but diversification efforts are needed to mitigate volatility."
FAQ: Stellar (XLM) and RWA Trends
1. Why is Stellar popular for RWA tokenization?
- Low fees, fast settlements, and institutional partnerships (e.g., Franklin Templeton).
2. What risks does XLM’s supply concentration pose?
- Price instability if major holders liquidate.
3. How does Stellar compare to Ethereum for RWAs?
- Cheaper transactions but smaller developer ecosystem.
👉 Explore Stellar’s RWA potential
Disclaimer: This content is for informational purposes only and does not constitute financial advice.