A week into PYUSD’s debut on Stellar (XLM), the stablecoin is garnering attention for the popular Layer-1 chain. Luring in cryptocurrency enthusiasts with low-free transactions, around 5 second finality and miscellaneous anchors for fiat ramps, PayPal’s stablecoin deployment on Stellar overshadowed the network’s native XLM coin.
Exactly 59% below from the all-time XLM price peak of $0.88 over 7 years ago, market connoisseurs smell upside potential if the trading volumes start hitting billions of dollars just like Ripple (XRP). Namely, Ripple’s native crypto struck a new all-time high (ATH) this year with institutional support, as whales & banks flipped tens of billions a day.
Stellar Levels Up RWA Game With PayPal’s PYUSD
Sinking by nearly 10% since last week, Stellar Lumens (XLM) is expected by multiple crypto market connoisseurs to witness strong price appreciation on the long term, with $1 being the key target. Aside from PayPal’s PYUSD, Stellar (XLM) also has access to $3 billion in Real World Assets (RWAs), a market mostly driven by stablecoins.
This includes companies like Mercado Bitcoin, Ondo Finance & MoneyGram, which are all partners with the Stellar Development Foundation. Ondo also launched the USDY stablecoin, focused solely on RWAs, connected via Stellar Asset Contracts.
This allows auto-payments, conditional disbursements and stablecoin-powered DeFi apps to use the PYUSD stablecoin as a financial powerhouse handling all business.
Whisk Upgrade Sparks Stellar’s $1 XLM Buzz
Naturally, this falls in line perfectly with the recent Stellar chain revamp, dubbed as ‘Whisk’, or Protocol 23. Rolling out key features like latency reduction & cost-effective capacity boosts, XLM network now benefits with next-gen interoperability between traditional Stellar operations & smart contracts.
This key chain upgrade launched on the mainnet during the first days of fall. With Ondo, PayPal & Mercado adding substantial yield, the $1 XLM price target would come closer to reality if Stellar Lumens restores a market cap of at least $18 billion, while historically most bull runs topped at just above $16 billion, according to CoinGecko’s price data.
Also, whale accumulation is necessary, but at the current position the largest players remain cautious with the Chaikin Money Flow (CMF) at status quo levels.
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PayPal’s USD stablecoin (PYUSD) launched on the Stellar network on September 19, 2025, enabling fast, low-cost cross-border payments via integrations with PayPal, Venmo, and Stellar apps like LOBSTR.
Stellar offers ~5-second settlements, sub-penny fees, and up to 5,000 TPS via the recent Whisk (Protocol 23) upgrade, ideal for scaling PYUSD’s global remittances and “PayFi” financing.
Coupled with PayPal’s 400M+ user base and integrations like Soroswap, this could fuel significant network activity, potentially pushing XLM’s value higher as adoption grows.
In addition, bullish analysts predict XLM could hit $1 by late 2025, provided PYUSD drives trading volume above $500M daily and breaks the $0.50 resistance level.
Regulatory approvals, such as from NYDFS, remain critical for broader adoption. Additionally, competition from networks like Solana or Ethereum could hinder growth, with potential price dips to $0.30 support.
