- Stellar ranks third in the real-world asset (RWA) tokenization market by value.
- Exchange balances on Binance have grown to 1 billion XLM.
- Active wallets have reached 9.5 million, growing by about 5,000 per day.
Stellar (XLM) is navigating a complex landscape in 2025.
As the blockchain gains traction as a hub for tokenized real-world assets (RWA), concerns about centralization and potential market manipulation are also rising.
Stellar has recorded an 84% increase in RWA-related value this year, surpassing $500 million.
However, with nearly 80% of XLM supply controlled by just ten wallets, analysts warn of volatility risk if large holders move to sell.
Meanwhile, daily wallet growth and rising exchange balances point to broader adoption but also the potential for selling pressure.
With institutional product integrations on Stellar and rising retail participation, investors remain divided over whether the current distribution model can support long-term price stability without triggering major corrections.
XLM supply concentrated in top wallets
The top 10 wallets hold roughly 25 billion XLM out of 30.9 billion circulating, representing about 80% of the available token supply.
Source: CoinMarketCap
This pronounced imbalance raises questions about decentralization and the network’s resilience.
Conversely, 90% of holders reportedly own fewer than 100 XLM, giving them little influence over market trends.
Such concentration could have serious implications for XLM price stability.
If a small number of holders liquidate large volumes, the market could face sharp corrections.
This risk is amplified by rising exchange balances: XLM held on Binance increased from 180 million at the end of 2023 to 1 billion by May 2025, according to Stellar experts.
The increase signals higher trading interest but also the potential for increased selling pressure.
RWA tokenization drives XLM adoption
Despite supply concerns, Stellar has made clear inroads into real-world asset tokenization — a sector attracting institutional capital and native crypto investment in 2025.
Stellar currently ranks as the third-largest network by RWA market capitalization, trailing only Ethereum and ZKsync Era.
Institutional-grade products such as the Franklin Templeton OnChain US Government Money Fund, valued at $497 million, and Circle’s USDC stablecoin with $345 million on the Stellar chain have helped push Stellar’s total RWA value above $500 million.
That figure has risen from $275 million in January, marking an 84% increase in five months.
This growth suggests traditional financial institutions are increasingly viewing Stellar as an alternative to Ethereum for asset tokenization.
Faster transactions and lower fees remain primary attractions.
On-chain growth supports adoption trends
The XLM network has also shown strong user base expansion: active Stellar accounts rose from 7.2 million in 2023 to 9.5 million by May 2025.
This represents an average addition of about 5,000 wallet addresses per day. That growth helps offset the impact of concentrated holdings, as demand increases across a broader user base.
Daily activity reflects more than speculative trading.
It indicates growing confidence in Stellar’s long-term utility, especially in the RWA sector.
While an expanding circulating supply often raises concerns about dilution or dumping, in Stellar’s case it appears aligned with a deliberate expansion strategy aimed at attracting more institutional and retail users.
Market remains split on centralization risks
Although Stellar’s RWA integration and active user growth highlight sustained demand, the risks associated with token concentration cannot be overlooked.
If top holders — or “whales” — decide to exit positions, price shocks could follow.
However, if network development continues alongside strategic RWA partnerships, Stellar could maintain and expand its niche within the broader crypto asset ecosystem.
While Stellar’s fundamentals appear robust, investors are likely to remain cautious until the network addresses its centralization risks.
Measures to improve token distribution, strengthen governance, or introduce staking mechanisms could help reduce future volatility.