Stellar Lumens (XLM) experienced a sharp decline in mid-October 2025, highlighting the token’s sensitivity to large-scale trades. Despite the downturn, the launch of a new institutional product on the same day provided a silver lining, suggesting growing professional interest in the asset.
A Volatile Ride for XLM
In a punishing 23-hour period, Stellar Lumens (XLM) faced a significant sell-off. The price plunged 8%, breaking through the $0.34 support level and sinking to a low of $0.322640 on October 14, 2025. This sharp move was accompanied by a substantial trading volume, which spiked to 393 million XLM as the market digested a large number of sell orders.
The sell-off was part of a challenging period for the token, which saw its value drop over 13% in the preceding week. However, the downturn was sharply reversed by a partial recovery. A 6% bounce lifted XLM back to trade near $0.35, demonstrating the volatile and fast-moving nature of the market.
An Institutional Safety Net Appears
Interestingly, the rebound coincided with a major development for institutional investors. On October 14, 2025, the same day XLM hit its low, asset manager WisdomTree launched a physically backed Stellar Lumens Exchange-Traded Product (ETP) across several European exchanges, including SIX and Euronext.
Trading under the ticker XLMW, this new product provides a regulated and compliant way for pension funds and asset managers to gain exposure to XLM’s spot price without the need to hold the tokens directly. The launch of such a product on a day of significant price stress indicates a foundational confidence in the asset from financial institutions and potentially offers a new channel for demand that can stabilize prices in the future.
Navigating a Broader Market Storm
The pressure on XLM did not occur in a vacuum. The wider cryptocurrency market was undergoing a major correction around the same time. Triggered by escalating trade tensions between the U.S. and China, the market saw over $500 billion in value wiped out in a massive deleveraging event.
During such “risk-off” events, altcoins like Stellar Lumens often experience more severe price swings compared to larger assets like Bitcoin. The data showed that while XLM was falling, other major cryptocurrencies were also in the red, confirming a broad-based market retreat that amplified the selling pressure on individual assets.
