Stellar Price Prediction: XLM Surges as Marshall Islands Launches Sovereign UBI Program on Blockchain

The Stellar network and the broader cryptocurrency market experienced significant momentum on December 21, 2025, as digital assets rallied following major real-world adoption milestones and institutional breakthroughs.

The cryptocurrency market saw a notable shift in sentiment as the total market cap climbed, with Stellar (XLM) emerging as a standout performer. XLM rose 3.96% in 24 hours to $0.223, outperforming the broader crypto market’s 1.89% gain. This surge marks a critical turning point for the payments-focused blockchain, driven by the launch of a government-led Universal Basic Income (UBI) program and massive real estate tokenization initiatives.

Why Is Stellar Price Surging? Sovereign Adoption Triggers Market Response

The primary catalyst for the recent rally is the Republic of the Marshall Islands (RMI) beginning its distribution of Universal Basic Income via Stellar’s blockchain on December 21, 2025. Using a specialized digital asset called USDM1, the RMI is targeting its 40,000 citizens to bypass failing traditional banking infrastructure.

Paul Wong, director of special projects at the Stellar Development Fund (SDF), highlighted the unique nature of this asset: “Unlike a stablecoin, where the issuer is actually earning yield, in this case, the asset holder is earning yield,” describing USDM1 effectively as a sovereign money market fund.

This initiative is particularly vital because the Marshall Islands has been increasingly reliant on physical cash arriving via shipping containers later than several banks withdrew from the region following the 2008 financial crisis. Rodri Fernandez Touza, co-founder of Crossmint (the platform powering the digital wallet), noted the necessity of the move: “Even if you want to make it work with cash, there are many times where constraints in the economy prevent people from having access to money”.

JUST IN: The Marshall Islands has launched the first on-chain universal basic income.

The initiative is powered by the Stellar blockchain.

— CoinDesk (@CoinDesk)

Strategic Partnerships & Institutional Momentum

Beyond government adoption, Stellar’s role in institutional finance was solidified this week through two major developments:

• RedSwan Tokenization: RedSwan tokenized $100 million in commercial real estate on Stellar, including multifamily and hospitality properties.
• Visa Integration: Ongoing collaboration with Visa for stablecoin settlements gained further traction, reinforcing Stellar’s position as a low-cost, regulatory-friendly alternative to ETH.

Tokenization is transforming the way people invest across sectors, and the real estate industry is no exception.

At Stellar House Miami, ‘s delivered a fireside chat on how tokenizing real estate.

Learn more

— Stellar (@StellarOrg)

Technical Analysis: Stellar Price Prediction Reveals Recovery Potential

The technical analysis indicates that the Marshall Islands news has acted as a “rebound trigger” for XLM later than a prolonged period of bearish pressure. The latest Stellar Price Prediction models suggest a cautiously optimistic outlook as the token attempts to break out of its consolidation phase.

Indicators and Key Levels

recently reclaimed its 7-day SMA ($0.215), and the RSI (currently 37.33 to 40.26) has exited deeply oversold territory. However, the asset remains below its 30-day SMA ($0.239) and 200-day SMA ($0.328), signaling that while the short-term trend is turning bullish, long-term hurdles remain.

• Bullish Scenario: If the $0.22 support level holds, the current Stellar Price Prediction points toward a rally to the $0.26–$0.31 range by January 2026, representing a potential 41% upside.
• Resistance Zones: Traders should monitor the $0.26–$0.31 zone. A clean break above this resistance would confirm a trend reversal.
• Bearish Risk: A decisive drop below $0.22 could view XLM test strong support at $0.20, potentially sliding toward new 52-week lows of $0.18.

Technical Summary: The current move is categorized by some analysts as a “B-wave bounce”—a temporary relief rally. To prove this is a lasting reversal, XLM must sustain volume and close above the 20-period SMA ($0.23).

Social Sentiment and On-Chain Activity

The real-world utility of the UBI program has sparked a significant shift in on-chain metrics. Data from December 2025 shows a spike in Stellar wallet activations and a 20% increase in positive social media mentions following the Marshall Islands announcement.

Prominent analysts and the Stellar community have been vocal about this shift. Here is the verbatim text and commentary on recent insights:

Source: @MoreCryptoonl (More Crypto Online)

“Stellar (XLM) The XLM chart may be approaching the end of a correction that began in 2018. At the moment, there are two primary scenarios that we are tracking..”

Source –

Commentary: This highlights the “decision point” XLM is currently facing. While the fundamental news is overwhelmingly positive, the technical “C-wave” drop remains a statistical possibility unless the $0.24 resistance is flipped into support.

Source: REX Shares Announcement (Contextual Reference)

“The first U.S.-listed ETFs offering spot exposure to $XRP and $DOGE go live tomorrow… offering investors a way to access these digital assets through an ETF structure.”

Commentary: While this specific tweet refers to XRP, the broader trend of institutional “payment-focused” ETFs is providing a “halo effect” for Stellar. As shares a similar cross-border payment narrative, institutional flows are increasingly looking at Stellar-based projects.

Broader Market Performance: BTC and Altcoins Stabilize

The global crypto market rose to $4.2 trillion this week, with BTC climbing toward $118,000. Stellar’s ability to outperform these gains suggests that investors are rotating capital into “Utility-First” assets that can demonstrate tangible government and enterprise use cases.

The success of the Marshall Islands program could catalyze further adoptions. The SDF is reportedly already working with the German government for Middle East payroll services and the United Nations for aid distribution in Ukraine.

Stellar Price Prediction FAQ

Is the Marshall Islands government using XLM? The government uses the Stellar network to distribute USDM1, a digital sovereign bond. While they do not necessarily use the XLM token as a currency, every transaction on the network requires a small amount of XLM as a “reserve” and for transaction fees, which are currently under $0.01 per transfer.

Will Stellar reach $0.50 in 2026? While current Stellar Price Prediction targets focus on the $0.30–$0.31 range for January 2026, reaching $0.50 would require a sustained breakout above multi-year resistance levels and broader market cooperation.

Is Stellar a excellent purchase right now? According to recent technical analysis, a measured accumulation approach is prudent. The primary entry zone is identified between $0.20 and $0.215 (near strong support). However, investors should be aware of the 5% risk below entry points due to inherent market volatility.