What is Axelar (AXL)?
- An Introduction to Axelar
- Solution provided by Axelar
- Axelar's Technology
- Axelar's Ecosystem
- Axelar News
- Axelar Price
An Introduction to Axelar
The digital assets industry is a vibrant ecosystem with hundreds of different blockchains. As developers can implement their ideas, methodologies, and technologies in these blockchains, they vastly differentiate themselves from each other. Although this can be useful depending on your needs such as fast transaction processing or low transaction costs, they have created fragmented and isolated blockchains. As a result, data and assets can’t freely flow through the ecosystem, lowering the user experience as transferring assets between networks can be challenging or not possible at all.
A common solution for this problem is the use of Bridges, which are smart contracts that lock assets on one network while creating a representation of this asset on the other. However, these bridges have their ecosystems, creating the possibility of excluding certain networks. Furthermore, as these assets are locked in a smart contract, they form a security risk. The industry has already experienced various bridge hacks, causing enormous losses.
Solution provided by Axelar
Axelar aims to solve this problem by providing a unique infrastructure that consists of the Axelar network, a PoS blockchain on which developers can create smart contracts and therefore decentralized apps (dApps). Just as any other blockchain users can interact with dApps and send/receive tokens on the Axelar network.
The added value of Axelar is that contracts created on the network are connected to Axelar’s Virtual Machine (AVM), which acts as a cross-chain gateway protocol. This environment is connected to 50+ blockchains and allows users to interact with other environments through cross-chain token transfers, calling a smart contract on another chain or passing general, arbitrary messages across chains.
Axelar's Technology
The Axelar Virtual Machine, powered by Cosmwasm, enables full-stack interoperability in a programmable layer, supporting services and tools that automate smart contract deployment and management across multiple blockchain ecosystems.
The Axelar Virtual Machine forms the foundation for two additional products that Axelar is introducing:
Interchain Amplifier
This is a permissionless model and service designed to enable effortless and seamless connections to the Axelar network and all its interconnected chains. With Interchain Amplifier, anyone can easily create a connection, contributing to the accessibility and interoperability of the Axelar ecosystem.
Axelar's Ecosystem
As Axelar aims to solve the interoperability challenges, its ecosystem consists of a vast number of projects and partners across tens of blockchains and various sectors. These sectors include the ever-increasing DeFi sector with well-known protocols such as SushiSwap and StakeDAO. But also infrastructure, gaming, non-fungible tokens, and payment protocols are affiliated with the upcoming interoperability.
Axelar News
On March 1st, the renowned cryptocurrency exchange Binance announced the listing of the Axelar token. This news sparked a substantial rally in the token's price, surging by over 80% within a matter of hours and achieving a trading volume surpassing $80 million on Binance alone. The listing of the AXL token on Binance is a significant milestone for the protocol, considering Binance's status as the largest exchange in terms of both user base and trading volume. Consequently, this development enables a broader user base to easily access the AXL token, potentially proving beneficial in the future, particularly as we anticipate a resurgence in retail market activity.
Axelar Price
The price of Axelar has broken out of a downtrend, as indicated by the descending line which has been broken by a significant bullish move. Following the breakout, the price has surged upwards but now appears to be encountering some resistance. The current price level suggests a zone where sellers have begun to emerge, causing the price to reach a peak. Additionally, considering that Axelar has risen 200% from the recent lows, a healthy correction is to be expected as seen on the chart.
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