XLM Nears $0.20 as Tether's USDT0 Goes Live on Stellar

The price of $XLM climbed 1.45%, moving closer to the $0.20 mark and extending a recovery that began from an August low near $0.155.

The gains come as another potential source of liquidity arrives for Stellar's payment-focused network: Tether's USDT0 token launched on the network earlier this week. Across its recent rallies, the $XLM price has so far struggled to break through its previous price records.

USDT0 Expands Stellar's Stablecoin Offering

On September 2, the Stellar Development Foundation announced the arrival of USDT0.

With USDT0, people and businesses can access Tether's $USDT liquidity on Stellar. Potential use cases include international payments, transferring funds between financial applications, and company settlements.

The design means that rather than issuing separate pools of tokens for every network the asset supports, there is a single common supply backed by $USDT. USDT0 is not exclusive to Stellar: the token had already been deployed on several other networks before the Stellar launch, making Stellar part of Tether's broader multichain strategy for the asset.

The launch increases the choice of digital dollars on Stellar's payments platform, joining USD-backed and euro-backed stablecoins already available on the network, such as USDC and PYUSD. For context, Stellar has long positioned itself around real-world payment corridors and asset issuance rather than speculative trading, and stablecoin issuers have increasingly treated multichain availability as table stakes as competition among payment networks and layer-1s intensifies.

Users do not need to hold $XLM to send payments; the network's native token is primarily used to pay transaction fees and maintain accounts. Increased stablecoin usage, however, would raise activity on the network and could boost $XLM's standing among its peers.

$XLM Price Approaches a Familiar Barrier

At the time of writing, $XLM traded at $0.1903, after ranging between a session low of $0.1854 and a high of $0.1964. Total trading volume for $XLM has reached 87.09 million.

The price is once again nearing $0.20, a level that halted advances in July and again in the second half of August.

A brief touch of that level may not be sufficient; buyers would need to hold $XLM above $0.20 to suggest room for a further rally. In that scenario, the next levels of interest would be $0.21 and then $0.22, an area that has historically attracted sellers.

A rejection from these levels could send $XLM back toward the $0.18 mark, a region that recently provided support. A further rejection could see the price return to trading ranges last seen in August, near $0.16.

Buying interest has begun to pick up, though it remains well below the levels seen during the sharp rallies earlier in the year. While $XLM is trending upward, the recovery has yet to deliver its strongest push.

Summary

$XLM reached $0.1964 as buyers pushed the price toward the repeatedly tested $0.20 level. USDT0 has expanded Stellar's stablecoin offering, although its effect on demand for $XLM remains uncertain. What to watch next is whether stablecoin activity on the network actually grows following the launch, and whether buyers can establish $XLM above $0.20 after repeated rejections at that level.