Yes, Stellar has the capability to support NFTs (Non-Fungible Tokens) through its token issuance framework. While it does not have a built-in NFT marketplace like Ethereum or Solana, developers can create and trade NFTs on Stellar using smart operations rather than complex smart contracts.
Since Stellar offers low transaction fees and fast speeds, it could become an attractive blockchain for NFT-based applications. If NFT adoption on Stellar grows, it could positively impact the XLM price by driving network usage.