A Shift Toward Financial Utility

According to crypto analyst Zach Humphries, Stellar (XLM) warrants close observation as institutional investors begin shifting their focus from speculative assets to projects with clear, real-world utility. He suggests that the next wave of capital won’t target meme coins but will instead flow into blockchains solving tangible financial problems, an area where Stellar specializes.

Humphries notes that while Bitcoin and Ethereum have already attracted significant institutional funds, specialized financial-layer altcoins could be next. Stellar is positioning itself effectively through collaborations with major players like Visa and Paxos to develop faster and more affordable stablecoin payment systems. The project has also received acknowledgment from the U.S. Federal Reserve for the speed and security of its consensus protocol, a form of validation that appeals to large-scale investors.

In his analysis, Humphries also points out that Stellar may have been unfairly overlooked due to the prolonged legal battle between Ripple (XRP) and the SEC. With that situation clearing up, he believes the market has yet to fully re-evaluate XLM on its own merits.

Growth in Real-World Asset Tokenization

Stellar’s fundamental strength is further underscored by its growing role in the tokenization of Real-World Assets (RWA). As investors increasingly seek both utility and yield, the RWA sector has seen renewed interest. The value of tokenized assets on the Stellar network has already climbed to $639 million, marking a 26.5% increase month-over-month.

Humphries views the disconnect between this network growth and XLM’s current price as a significant opportunity. While the network’s adoption is expanding, the token’s valuation has not yet caught up, creating a potential window for investors.

Technical Outlook and Key Price Levels

From a technical standpoint, Humphries identifies $0.36 as a critical breakout level for XLM. A decisive move above this price on strong volume could quickly propel the asset toward its next target of $0.41. However, he adds a note of caution, pointing out that the Relative Strength Index (RSI) is already high.

This suggests the price might need a period of consolidation or a slight pullback before its next major advance. A dip to support levels around $0.31 or even $0.28 could establish a more stable base for a sustained rally. Despite being well below its all-time high, Humphries sees the combination of strong fundamentals and a promising chart setup as a compelling reason to monitor Stellar’s performance closely.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.