Saad Ullah
Large-scale investors are regaining faith in Stellar (XLM). Over the past two months, more than 240 million XLM tokens have been withdrawn from Binance — the biggest outflow since early 2024. This movement suggests whales and institutional holders are shifting assets into cold storage, a classic sign of accumulation and growing confidence.
A Surge in Withdrawals Signals Shifting Market Behavior
According to recent analysis from STEPH IS CRYPTO, the withdrawal pattern is unmistakable. Stellar's balance on Binance had been climbing through late 2024 into early 2025, peaking at around 1 billion XLM.
Then it dropped sharply to roughly 800 million — a 20-25% decline representing a major on-chain event. When investors move tokens off exchanges at this scale, it typically means they're planning to hold rather than trade. The chart shows years of gradual buildup followed by a sudden decline at the start of 2025, indicating holders are transferring tokens into private wallets to secure them long-term and reducing available supply on exchanges.
Chart Analysis: A Clear Drop After Extended Accumulation
The chart tracks Stellar's exchange balance from 2019 through 2025, showing a consistent upward trend for most of that period. At the beginning of 2025, the balance reverses sharply — a clear indicator of major outflows following one of the steepest accumulation phases in recent years. These movements are historically viewed as bullish, reducing circulating supply and indicating investors aren't planning to sell soon. The last similar drawdown during mid-2024 preceded a short-lived rally, reinforcing the idea that significant outflows often precede stronger price action.
Why Holders Are Moving XLM Off Exchanges
Several factors are driving this behavior: renewed investor confidence as the broader crypto market stabilizes; security priorities as holders prefer self-custody following scrutiny around centralized platforms; fundamental growth in Stellar's expanding role in cross-border payments and tokenized assets, which appeals to institutional investors; and reduced liquidity risk since fewer tokens on exchanges means less selling pressure. Together, these point to strategic accumulation rather than panic selling.
Historical Context and Market Outlook
Large outflows from exchanges have historically signaled the start of accumulation cycles. When supply on exchanges declines, market liquidity tightens, often leading to price appreciation if demand holds steady. For Stellar, the timing aligns with improving on-chain activity and stronger sentiment toward blockchain payment networks. If this trend continues, the market could be witnessing the early phase of a long-term recovery pattern.
Saad Ullah
