Stellar (XLM) Surpasses Ethereum in Institutional Investment
Stellar (XLM) has emerged as the frontrunner in institutional investment flows, surpassing Ethereum in daily inflows into tokenized funds. Recent figures from data analytics firms RWA.xyz and Token Terminal reveal that Stellar attracted $17.1 million in net inflows within a 24-hour period, while Ethereum saw slightly lower figures at $16.0 million and Polygon at $5.9 million.
Growth of Real-World Assets (RWAs)
This significant uptick represents the RWA sector’s remarkable fourfold growth since last year, with the overall value of real-world assets (RWAs) on the network soaring by 360% to reach an impressive range of $3.5 to $4 billion.
Stellar’s Position in the Blockchain Landscape
Looking at the broader blockchain landscape, Stellar’s latest performance has propelled it to third place globally in terms of assets under management (AUM), placing it behind only Ethereum and BNB Chain in this competitive arena.
Key Drivers of Capital Inflows
This growth in capital inflows is primarily driven by major regulated funds that have strategically distributed liquidity across several key regions:
- France: The Spiko Amundi Overnight Swap Fund, a government bond fund, stands out as the largest asset on the Stellar network, boasting $1.29 billion under the EU’s UCITS regulations.
- United States: Notable funds include Franklin Templeton’s BENJI government money market fund, which manages $521.1 million, and the Ondo U.S. Dollar Yield (USDY) fund with $537.1 million, both of which are under SEC regulation.
- Luxembourg: The Yuleba Bond 2030, a corporate credit instrument, adds to this landscape with $500 million.
Additionally, Circle’s USDC stablecoin, with a valuation of $367.7 million, acts as a critical settlement gateway within the Stellar ecosystem, fully compliant with Europe’s MiCA regulation. The RWA sector also maintains a robust infrastructure with 707,248 active addresses and a monthly transfer volume that hit $10.72 billion.
Future Prospects for Stellar
Looking ahead, Stellar is anticipating heightened activity in the first half of 2027, spurred by the announcement from the U.S. securities depository DTCC to connect its tokenization services to the Stellar blockchain, which will facilitate the on-chain transactions of Russell 1000 stocks and significant ETFs. Additionally, the Tradable platform is preparing to incorporate up to $1 billion in private credit assets.
Comparison with XRP Ledger (XRPL)
In a juxtaposition, Stellar’s advancements underscore its divergence from its historic rival, the XRP Ledger (XRPL), introduced by co-founder Jed McCaleb. While Stellar focuses on traditional banking assets and government bonds, XRPL has carved a niche in commodities and industrial asset tokenization. Ripple’s ecosystem, for instance, is currently centered around the JMWH energy contracts valued at $2.22 billion and corporate debt pools from Latin America via VERT Capital. Moreover, Ripple USD (RLUSD), a regulated stablecoin, facilitates settlement activities and has a market cap of $1.16 billion.
Overall, the recent influx of investments reinforces Stellar’s status as a predominant public blockchain infrastructure for regulated investment products, effectively segmenting the global RWA market into debt and industrial categories.
