Despite suffering a dramatic 60% flash crash earlier this month, Stellar (XLM) is drawing renewed optimism from traders and institutions alike.
Behind the recovery hopes lie a unique mix of fundamental developments, including the launch of a new physically backed ETP and key partnerships.
WisdomTree’s XLM ETP and Stellar’s Institutional Momentum Spark Renewed Optimism
On October 14, WisdomTree announced the launch of its Physical Stellar Lumens (XLMW) ETP across Europe. It is listed on the Swiss SIX Exchange and Euronext in Paris and Amsterdam. A forthcoming debut is expected on Deutsche Börse Xetra.
The ETP directly exposes Stellar’s native token, Lumens, through a fully collateralized, physically backed structure. The financial instrument has a management expense ratio of just 0.50%.
“This is the lowest-cost, physically backed Lumens ETP in Europe,” read an excerpt in the announcement.
The product is designed for institutional investors seeking transparent and regulated access to Stellar’s ecosystem. WisdomTree highlighted this as “a high-performance Layer-1 blockchain purpose-built to modernize global finance.”
Since its launch in 2014, Stellar has expanded from a niche remittance protocol into a globally distributed network. It powers cross-border payments, tokenized real-world assets (RWAs), and decentralized finance applications.
Its proprietary Stellar Consensus Protocol (SCP) enables near-instant transactions without mining rewards or excessive energy use.
“Stellar is one of the most established blockchains in the world, with a clear focus on solving real-world problems in cross-border payments and finance,” the announcement stated, citing Dovile Silenskyte, Director of Digital Assets Research at WisdomTree.
Stellar Deepens Ties with Global Banking
Further boosting confidence is news about José Fernández da Ponte, President and Chief Growth Officer of the Stellar Development Foundation (SDF). Ponte recently joined the International Advisory Board of Santander, one of Europe’s largest banks.
The appointment marks another step in bridging open blockchain networks with legacy financial institutions.
Market observers interpret the move as a signal of growing institutional alignment for Stellar’s mission and potentially deeper partnerships between traditional finance (TradFi) and blockchain rails.
Traders Spot Bullish Setups for XLM Price as Sentiment Turns from Flash Crash to Foundation
XLM, the powering token for the Stellar ecosystem, was trading for $0.33967 as of this writing, up by almost 4% in the last 24 hours.
Stellar (XLM) Price Performance. Source: BeInCrypto
Technical analysts are also turning optimistic. Data from Into the Cryptoverse indicates that XLM’s Short-Term Bubble Risk, a measure of overvaluation pressure, has declined, suggesting reduced downside risk.
XLM Short-Term Bubble Risk. Source: Into the Cryptoverse
Veteran trader Peter Brandt likened XLM to “a bull waking from a nap,” implying a potential accumulation phase before a major upswing.
Similarly, analyst Zach Humphries said on X (Twitter) that Stellar looks poised to repeat its 2017 bull run, noting key on-chain signals:
Record network activity
Strong correlation with BTC and ETH, and
Growing accumulation in current price zones.
The 60% flash crash, attributed to cascading liquidations on leveraged positions, rattled retail traders but failed to dent institutional sentiment.
Now, sentiment is that regulated vehicles like WisdomTree’s ETP and Stellar’s deepening banking ties could help stabilize long-term confidence.
With Stellar Lumens’ market cap nearing $11 billion and a fixed total supply of 50 billion XLM, the network’s scarcity model, expanding use cases, and cross-border footprint continue to reinforce its value proposition, even amid volatility.
