Stellar Price Drops Amid Market Weakness and DeFi TVL Concerns

Stellar (XLM) has dropped approximately 3.1% in value over the last 9 hours, and experts believe this decline is connected to both market dynamics and specific narrative headwinds.

The total crypto market cap fell about 3.23% over the past 24 hours, with Stellar's altcoin market cap dropping around 2.97%. In contrast, XLM itself dropped roughly 5.16% in that same timeframe, with a more modest 3.14% decline over the last 9 hours.

Stellar's recent price drop is not indicative of a single huge liquidation event, as its 24-hour trading volume is around $148.31 million. The price path over the last day appears to be a series of modest steps lower rather than a sharp crash at a single timestamp.

One narrative that likely contributed to the decline in sentiment towards XLM is the reported 60% drop in DeFi total value locked (TVL) on Stellar, from near $270 million to about $98 million within 24 hours. However, it's unclear whether this move is a data error, protocol migration, or genuine capital outflows.