Stellar (XLM), a decentralized blockchain renowned for its quick and cost-effective cross-border payment solutions, has caught the interest of both individual and institutional investors in 2025.

Nevertheless, the clustered distribution of XLM supply and its potential for real-world asset (RWA) applications pose both opportunities and challenges.

The distribution of XLM supply has raised concerns, with the top 10 wallets holding around 25 billion XLM out of a total circulating supply of 30.9 billion XLM, indicating that a small group possesses nearly 80% of the supply. This concentration poses decentralization questions, as a few entities with substantial token holdings could sway the market. Despite this, the majority of XLM holders have less than 100 XLM, suggesting minimal impact on prices for most retail investors and potential volatility risks if large holders decide to sell.

Additionally, data from stellar.expert reveals a steady increase in XLM balances on Binance since late 2023, from 180 million XLM to 1 billion XLM, indicating a rising demand for trading and potential selling pressure in response to adverse news.

While such data may seem concerning for the network's future, supporters of XLM argue that a growing circulating supply is indicative of increased adoption and deliberate strategy. On-chain data also supports this claim, showing a rise in Stellar's active accounts from 7.2 million in 2023 to 9.5 million by May 2025, with approximately 5,000 new wallet addresses being added daily to meet the expanding demand for XLM.

In the realm of real-world asset tokenization, Stellar is making a significant impact, ranking as the third-largest protocol by RWA market capitalization after Ethereum and ZKsync Era. Noteworthy participants in Stellar's RWA ecosystem include Franklin Templeton OnChain US Government Money Fund valued at $497 million and Circle's USDC stablecoin holding $345 million on the Stellar network. The total value of RWAs tokenized on Stellar has surged by almost 84% in 2025, increasing from $275 million to over $500 million by May, showcasing the platform's growing appeal for real-world asset tokenization.