What Is the AXL Coin? Opportunities and Challenges for the Rising Cross-Chain Star
The core token AXL of the Axelar network is rapidly becoming a key player in cross-chain interoperability in the crypto world. As the native token of the decentralized cross-chain protocol Axelar, it serves three functions in the network: staking, governance, and Gas fee payment.
Technically, Axelar significantly lowers the development threshold for cross-chain applications through its virtual machine (AVM) and developer tool stack Mobius. It is currently connected to over 56 blockchains including Ethereum, Cosmos, Avalanche, and has processed a total transaction volume exceeding 7 billion dollars.
Token Positioning, AXL’s Value Foundation
AXL is not merely a payment tool, but a pillar of the economy and governance that maintains the operation of the Axelar cross-chain network. Its core functions revolve around three major dimensions:
- Security Assurance: Users pay AXL as transaction fees to incentivize validators to maintain network security, forming a trust foundation based on PoS consensus.
- Governance participation: Token holders can participate in key decisions such as protocol upgrades and parameter adjustments through staking, promoting the decentralized evolution of the network.
- Deflationary mechanism driven: The Cobalt upgrade in February 2025 will introduce a Gas burning mechanism, reducing the inflation rate to 0.3%, and the supply contraction model will enhance its value storage attributes.
In terms of Token allocation, the total amount of AXL is approximately 1 billion coins, with the community project having the highest proportion in the genesis block (35.96%), followed by the team (29.5%) and investors (29.54%).
It is worth noting that the unlocking of some tokens will continue until 2026, and potential selling pressure should be taken into account by investors as a risk consideration.
Market Heat, Recent Performance and Catalysts
In June 2025, AXL achieved a key breakthrough. Accompanied by the launch of the Korean leading exchange Upbit’s KRW trading zone, as well as the news that Canary Capital applied to launch an AXL ETF, its price once surged to $0.58, setting a historical peak, with a 24-hour trading volume soaring to $421 million.
By mid-June 2025, the AXL price hovers around $0.52, with a total market capitalization of $512 million. Market sentiment shows significant differentiation:
- Bullish Logic: Relying on the partnership with Ripple and Circle to expand USDC cross-chain liquidity, as well as exploring real-world asset (RWA) tokenization scenarios (such as collaboration with Centrifuge), the potential for ecosystem expansion is widely optimistic;
- Bearish concerns: The increase in holding costs due to negative fee rates, combined with the short-term risks brought by high volatility (112.83% volatility), has led some investors to remain cautious.
Future Projections, Price Potential and Key Variables
For the medium to long-term price of AXL, market forecasts show multi-level differentiation. Most institutions give optimistic expectations based on the explosion of cross-chain demand and the deflationary model, but they do not overlook competition and macro risks:
- Radical prediction: If Axelar continues to dominate the interoperability track, it may reach $10 - $15 by 2025, with some views even pushing towards $20 (representing several times the current price);
- Neutral framework: Under the premise of steady cooperation and controllable inflation, the $5 - $10 range has fundamental support;
- Conservative scenario: If faced with technical delays or regulatory pressure, the price may come under pressure below 1 dollar.
Future Outlook
Three major variables will dominate the future direction:
- Adoption rate: More mainstream links and DeFi protocol integrations will directly boost AXL demand;
- Competitive landscape: The iteration speed of competitors like LayerZero and Cosmos may siphon off ecosystem share;
- Regulatory adaptation: If the compliance framework for cross-chain assets becomes stricter, it may restrict protocol expansion.
Price Prediction The divergence essentially represents the two sides of the explosive potential and uncertainty of the cross-chain track. Whether AXL can reach 10 USD or not, the underlying Axelar has already established its technological value - weaving the fragmented chain world into a network.
The assets and data flowing within this network are precisely Web3 Evolved Bloodline.
