The unexpected price decline of Stellar (XLM) in October boosted demand, even though the token has not yet recovered its previous losses. On-chain data and the project’s latest updates reflect confidence among certain investors, while overall market sentiment remains pessimistic.

Investor accumulation of XLM throughout October indicates long-term conviction rather than short-term price chasing. The following factors provide a clearer explanation.

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Exchange Reserves Plunge While TVL Hits Record High

According to DeFiLlama, the total value locked (TVL) on the Stellar chain, measured in XLM, has surged to an all-time high of over 456 million XLM locked across various DeFi protocols.

Comparing XLM’s price performance with its TVL since last December highlights investors’ faith in the network’s ecosystem.

Specifically, since December, XLM’s price has dropped by 50%, but the amount of XLM locked in DeFi protocols has increased more than fourfold.

Another positive sign comes from Binance wallet data. The exchange’s official XLM address (GBA…GPA) recorded over 240 million XLM withdrawn from the exchange over the past two months, the largest outflow since 2024.

Combining these two data points suggests that many XLM investors were heavily accumulating during October. They may have moved tokens off exchanges for long-term storage or to deploy them in DeFi.

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However, the overal

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Author: Nhat Hoang