XTerm is X11 only. Considering that Wayland is much more lightweight than X11, it's hard to imagine XTerm beating e.g. Foot, which is purpose-built for modern Wayland desktops, with almost no abstraction in between.
Not to mention that these terminals have much better overall engineering than XTerm, whose README famously states "This is undoubtedly the most ugly program in the distribution." That line alone is enough for me to avoid XTerm like the plague.