Domain Name System (DNS) tunneling remains a covert channel for data exfiltration and command-and-control communication. Although graph-based methods such as GraphTunnel achieve strong accuracy, they introduce significant latency and computational overhead due to recursive parsing and graph construction, limiting their suitability for real-time deployment. This work presents DNS-HyXNet, a lightweight extended Long Short-Term Memory (xLSTM) hybrid framework designed for efficient sequence-based DNS tunnel detection. DNS-HyXNet integrates tokenized domain embeddings with normalized numerical DNS features and processes them through a two-layer xLSTM network that directly learns temporal dependencies from packet sequences, eliminating the need for graph reconstruction and enabling single-stage multi-class classification. The model was trained and evaluated on two public benchmark datasets with carefully tuned hyperparameters to ensure low memory consumption and fast inference. Across all experimental splits of the DNS-Tunnel-Datasets, DNS-HyXNet achieved up to 99.99% accuracy, with macro-averaged precision, recall, and F1-scores exceeding 99.96%, and demonstrated a per-sample detection latency of just 0.041 ms, confirming its scalability and real-time readiness. These results show that sequential modeling with xLSTM can effectively replace computationally expensive recursive graph generation, offering a deployable and energy-efficient alternative for real-time DNS tunnel detection on commodity hardware.