Upbit suspended XLM trading as Stellar’s Protocol 23 upgrade began, aimed at enhancing network infrastructure.

Stellar Upgrade Triggers Trading Pauses on Major Exchanges

South Korea’s largest exchange, Upbit, suspended XLM deposits and withdrawals on September 3 as Stellar initiated its Protocol 23 upgrade; XLM price action showed resistance at $0.37.

The Event in Detail

On September 3, Upbit and Bithumb, two major South Korean exchanges, suspended deposits and withdrawals of XLM as Stellar began its Protocol 23 upgrade. The upgrade aims to enhance network infrastructure, improve interoperability, and broaden real-world asset utility, with approximately $460 million in assets already on the network. The upgrade includes seven protocol amendments (CAP-0062 to CAP-0068) and one SEP (SEP-0041).

Market Implications

During heightened selling pressure on Monday, XLM established fundamental support at $0.344. Accumulation is currently ongoing between $0.35 and $0.36. If the recovery continues, XLM could overtake the $0.37 resistance and rally towards the $0.40 psychological level. Breakout potential above $0.37 resistance depends upon sustained volume validation. If the market fails to rally higher, XLM could face a rejection and drop to the $0.34 support level again.

Expert Commentary

The Stellar Development Foundation aims for 5,000 transactions per second (TPS) to support DeFi and enterprise use cases.

Broader Context

Stellar's Protocol 23 upgrade introduces technical advancements to enhance scalability, smart contract efficiency, and institutional-grade performance. Features like parallel transaction execution (CAP-0063) and Soroban Live State Prioritization reduce costs and improve throughput, targeting 5,000 TPS for enterprise adoption. Exchange pauses (e.g., Upbit) during the upgrade highlight Stellar's institutional relevance, while optimized fees and compliance tools position it to compete with Ethereum and Solana. The upgrade aims to attract tokenized securities platforms and DeFi protocols by enabling granular asset tracking and transparent metadata for auditable transactions.

This upgrade occurs amid other developments in the crypto space. Hedera Hashgraph is also showing resilience through strategic partnerships and an upcoming mainnet upgrade to version 0.64. This environment underscores the continuous evolution and adaptation within the blockchain ecosystem.

Following the upgrade’s rollout, traders are eyeing $0.45 resistance and $0.30–$0.32 support as key levels to watch for XLM price movements. The market sentiment remains uncertain, with potential for a bullish breakout if the upgrade is successful, but a risk of a bearish pullback if it is not.