What Is Axelar (AXL)?
DApps (short for decentralized applications) have joined the Web3 world with a bang, and understandably so. They have not only made self-executing financial contracts but also enabled multiplayer games and social media platforms that are decentralized. How great it would be if these dApps were interconnected! Axelar has heard these wishes and has entered the market to help. In this article, we will review Axelar (AXL) and give some guidance on investing in its native coin. Read ahead to find out!
It delivers Web3 interoperability to all users by securely allowing them access to all blockchain ecosystems, assets, and applications on its universal decentralized network. Here, the AXL token makes this decentralization of the network possible and workable.
The Birth of Axelar: A Brief History
Georgios Vlachos and Sergey Gobunov laid the foundations of this blockchain platform back in 2020. Georgios created the Algorand consensus protocol and Sergey spearheaded the effort to look after BLS signatures.
The Vision Behind Axelar
The team behind this platform deeply values creativity and innovation.
The Growing Need for Blockchain Interoperability
Currently, there are not many blockchain platforms that make connections possible between different blockchain networks. The founders of Axelar took note of this gap in the Web3 world, and created Axelar to address it. Thus, they provide developers with an atmosphere to connect a network without the hassle of learning a new programming language. This allows users from slow blockchain networks to seamlessly open their dApps onto the Axelar platform without any delay.
What is Blockchain Interoperability?
Interoperability refers to the ability of users of one blockchain network to communicate with other blockchain networks.
Why Interoperability Matters in Today’s Crypto Landscape
Complaints of lack of interoperability abound in the crypto world.
Blockchain network interoperability allows developers to make use of the most fitting blockchain based on their capacities.
The Technology Driving Axelar
The purpose of Axelar’s technology is to allow more complex functions to work across different blockchain networks. It is different from transferring assets from one network to the other. It is Axelar’s General Message Passing (GMP) that makes it possible for the platform to allow cross-chain communication of data, governance, and transfer of assets like NFTs.
Blockchain Interoperability on a Technical Level
Axlar’s technology employs three types of systems. The first is the application APIs and SDK. The second is the Layer-1 Gateway which manages the sending and receiving of messages. Finally, the third is the platform itself, which is a set of validators coupled with permissionless protocols.
The Core Protocols of Axelar
At the heart of the Axelar protocol is a virtual machine. It is a decentralized protocol that executes smart contracts online. An additional advantage of Axelar VM is that it works on other networks, greatly improving the dApp capabilities of the platform. Axelar VM is compatible with EVM and IBC.
Axelar’s Network Architecture
The system of Axelar is built on three pillars: applications, Layer 1 gateways, and the Axelar network itself. The platform uses techniques like Turing-complete calls as part of its working mechanisms. Furthermore, this platform works as a permissionless Proof-of-Stake network.
How the Axelar Network Functions
Axelar works by enabling dApp users to interact with assets on any network regardless of whether the blockchain is private or public. The network also supports developers creating multi-chain dApps that leverage the best aspects of each network. This structure will improve performance and programming time. The system introduces techniques such as Turing-complete calls as part of its model.
Consensus Mechanism of Axelar
It uses the Cosmos Software Development Kit (SDK), which is an open-source software with built-in cross-chain interoperability. Cosmos SDK uses the Tendermint consensus, which is used by Axelar to validate requests on the source chain and verify changes on the destination. One good feature of the Tendermint consensus is that it provides Byzantine fault tolerance.
Axelar’s Cross-Chain Communication
Cross-chain communication at Axelar is managed by Axelar Fabric. The Axelar Fabric provides a uniform solution to cross-chain communication that meets the needs of both platform developers and application builders. For platform developers, no integration work is required from them, and for application builders, one simple protocol and API can be used to access global liquidity and communicate with the entire ecosystem.
Facilitating Cross-Chain Transfers
Cross-Chain Transfer Protocol (CTP) is an application-level protocol that allows dApps developers to link their apps on any blockchain to communicate and perform cross-chain transfers. They use API calls similar to HTTP requests.
The Role of Satellite Chains in Axelar
Satellite is a web application residing on the Axelar network. It enables users to transfer crypto assets seamlessly from one chain to the other. Satellite is used to transfer assets between main networks. If you’re using it for the first time, then we advise you to transfer small amounts first.
How Axelar Ensures Security
Below we shall discuss security measures utilized by Axelar.
Security Protocols and Measures
The use of DPoS consensus mechanism achieves BFT that allows up to one-third of validators to fail without compromising the security of the network. Moreover, holders of AXL tokens delegate stake to the validators. The number of active validators in the active set is determined by on-chain governance. At the time of writing, 70 validators are included in the on-chain governance list.
Trust Assurances for Users and Developers
All Proof-of-Stake consensus mechanisms run the risk of having voting power concentrated to a handful of stakers. At Axelar, however, this type of concentration is internalized by quadratic voting. That means to increase your voting power, Axelar validators must increase their delegated stake exponentially, not linearly.
Axelar’s Native Token – AXL
It provides free governance rights to these stakers over the network, who can delegate these tokens to validators, and earn rewards by way of an inflationary mechanism, raising the total supply of tokens. Additionally, every chain that is interconnected in this network launches an external chain inflation rate into the ongoing system.
Primary Functions and Use Cases of AXL
Let’s take a closer look at the uses of AXL tokens. This chain-agnostic token is not only used for governance and staking but also for paying transaction fees and providing liquidity. As a Proof-of-Stake network, validators on Axelar earn rewards in AXL from securing the network. Whereas, some of the parameters covered in the governance aspect of the token include the base inflation rate, chain rewards, transfer rate limits, and the addition of new EVM chains.
Tokenomics of AXL: A Detailed Overview
The total supply of AXL is 1,070,075,609. Backers hold about 30% of the supply; Team: 17%; Company operations: 12.5%; Community sale: 5%, and the rest by community programs. The live Axelar price today is $0.546510 USD with a 24-hour trading volume of $5,084,009 USD.
Acquiring and Storing AXL Tokens on Bybit
To buy AXL on Bybit, you need to follow these steps:
Sign Up and Buying
To Sign up for Bybit, click on the link below, which will take you to the registration page using a special Coin-Labs referral code. Then complete the required KYC verification process before depositing cryptocurrency into your Bybit account. Please click on Buy Crypto, and then P2P Trading on the top left corner of the navigation bar to enter the P2P trading page. Next, on the Buy page, choose your preferred advertisement and select AXL. You’ll be redirected to the order page, where you have 15 minutes to transfer the money to the seller’s bank account. Click on Payment Completed once you’ve completed the payment.
Safely Storing Your AXL Tokens
Once the coins you’ve purchased have been successfully released by the seller, you can click on Check Asset to view them, along with your transaction history. If the seller fails to release the coins after 10 minutes, you can click on Submit Appeal.
Axelar’s Ecosystem and Partnerships
AXL has partnerships with renowned names in the blockchain market. It takes pride in its ability to connect over 30 different blockchains and virtual machines, inclusive of Binance (BNB) and Ethereum. The list of blockchains that AXL connects is long, but it’s worth mentioning some, such as Polygon, Cosmos, Avalanche, Arbitrum, Juno, Kujira, Moonbeam, Fantom, Osmosis, and Celo.
The Economic Implications of Axelar
The economic implications of Axelar are the same as that of blockchain interoperability in the constantly evolving Web3 ecosystem. Interoperability like Axelar’s can not only help unravel complex applications that function in a single blockchain network but also help empower enterprises and governments to safely onboard an environment from where to carry out cross-chain communication.
AXL in Liquidity Pools and Yield Farming
A liquidity pool is a smart contract that contains a reserve of multiple cryptocurrency tokens in a DEX. In yield farming, cryptocurrency holders deposit their assets into different liquidity pools to provide liquidity to others. These holders basically work as liquidity providers. Axler has opened up new ways to use cryptocurrencies for yield farming. That means you can transfer your assets from any connected chain to any other connected chain without swapping any tokens.
AXL’s Impact on DeFi Accessibility
AXL being a DEX allows its users to swap coins and perform other DeFi activities with ease. Thus it has impacted the use of an external wallet, liquidity pools, and the NFT marketplace.
Investment Potential of AXL
AXL has promising investment potential. AXL Smart Routing protocol crawls the Ethereum and BSC networks to select the highest prices for coins before swapping. This feature provides a benefit to AXL holders as they can capitalize on the lower costs of swapping coins.
Axelar vs. Other Cross-Chain Protocols
Axelar is not the only platform that provides interoperability. LayerZero is another similar solution that makes building bridge smart contracts easier. Axelar may be better than LayerZero such that it is a complete network of interoperable bridges. On the other hand, Atom is another rival of Axelar. Again, Axelar stands out because of its ability to bridge outside the Cosmos, the use of GMP and IBC (Inter blockchain communication).
The Future Roadmap of Axelar
Axelar brings developers the long-awaited decentralized and trusted link between blockchains to unlock an interconnected Web3 ecosystem. With a strong technical foundation, rapid ecosystem growth, and support from major investors, Axelar is well-positioned as a leader in cross-chain infrastructure. While risks remain in any emerging project, the potential is significant as bridges between chains are needed to realize the promise of a multi-chain future.
Among all the interoperability providers, Axelar is not only a platform for dApp developers but also for investors who are looking to make some financial gains. This project has a strong team that promises a bright future. Who knows, a hundred years later, Axelar might be the new Facebook.
Here are some factors that investors should consider before investing in Axelar.
|Publisher or Developers
|Georgios Vlachos, Sergey Gobunov
|Headquarters (Registration Number)
|Published Date (CMC Registration)
Reliability Score of Axelar in 2024
These are indexes mesuring the investment reliability of Axelar conducted by Coin-Labs.com.
|Investment Reliability Rating Items
|Scores and Current Status
|Company Activation Rate
|/ 10.0 CAR
|/ 10.0 CR
|Technology Transparency Rate
|/ 10.0 TTR
|Development Participation Rate
|/ 10.0 DPR
|Listing Status on the World's Top 10 Exchanges
|Listed on 3 Exchanges
|Number of Available Pairs Worldwide
|Market Cap of the Cryptocurrency
|502,293,920 USD (Rank #108)
Here are the price and recent trading volume of Axelar. (Data of 2024-02-23 14:34:00)
|Price and Trading Volume of Axelar
|Price Change 24h
|Price Change 7d
|Trading Volume 24h
|Trading Volume Change 24h
You can check the development status and social media information of Axelar through the links in the table below.
|🌎 Official Website
|📖 White Paper
|🛰️ Source Code (GitHub)
|🎺 Message Board
Where to Buy Axelar
Here are the top ten world crypto exchanges where traders can buy Axelar in 2024.
Frequently Asked Questions
What is the current price of Axelar?
Axelar price today is 1.526 USD. Furthermore, the price of Axelar has fluctuated by 19.35% from 24 hours ago, and by 20.63% from a week ago.
Where is Axelar listed?
Currently, it is listed on a total of 3 among the world top 10 exchanges.
What is the market cap of Axelar now?
Currently, Axelar has a market cap of 502,293,920 USD, which is ranking 108 among cryptocurrencies worldwide.
How much is the trade volume of Axelar?
Currently, 575,862,069 AXL coins are circulating through 82 market pairs. As a result, in the last 24 hours, 25,106,985 USD of AXL coins were traded in the market.