Stellar Makes Progress in RWA Market, Concerns Raised Over Concentration of XLM Supply

Stellar has made significant strides in the tokenisation market for real-world assets (RWA) while facing concerns over the centralisation of its XLM token supply. In 2025, the blockchain network has emerged as a key player in facilitating the tokenisation of assets, with the total value of RWA-linked assets on the network surpassing $500 million this year – an increase of 84%.

Despite its success in the RWA market, Stellar’s XLM token faces a critical challenge in the form of token supply centralisation. Nearly 80% of the total XLM supply is controlled by the top ten wallets, which account for around 25 billion XLM out of the 30.9 billion in circulation. This concentration of supply raises concerns about the potential for market manipulation and volatility. If a significant amount of XLM is sold by these large holders, it could lead to sharp corrections in the market.

Moreover, the rising exchange balances of XLM, particularly on platforms like Binance, suggest increasing trading interest but also the risk of mounting sell pressure. The rapid expansion of exchange balances points to potential sell-offs by large holders, which could further exacerbate market volatility and price instability.

In contrast to the concentration of XLM supply among a few wallets, the majority of holders reportedly own small amounts of XLM, with 90% of holders possessing fewer than 100 XLM. This distribution model gives little influence to the majority of holders over market trends and raises questions about price stability in the long term.

On the positive side, Stellar has seen growing adoption in the RWA tokenisation market, with institutional-grade products like the Franklin Templeton OnChain US Government Money Fund and Circle’s USDC stablecoin contributing to the network’s total RWA value surpassing $500 million. This growth underscores the increasing interest from traditional financial institutions in Stellar as an alternative platform for tokenised assets, given its faster transactions and lower costs compared to Ethereum.

Despite the positive developments in the RWA market and the expanding user base of the Stellar network, concerns over the centralisation of XLM supply persist. Investors remain divided on the risks associated with token concentration and the potential impact on price stability. Efforts to increase token distribution, enhance governance, and introduce staking mechanisms may help mitigate these risks and bolster confidence in the long-term prospects of the Stellar blockchain.