AXL Introduction: What is it?
Figure:https://www.axelar.network/
AXL is the native Token of the Axelar Network, which is a key asset supporting the operation of its cross-chain ecosystem. Axelar is a decentralized network focused on “cross-chain interoperability” with the goal of connecting all major blockchains (such as Ethereum, Solana, Cosmos, Bitcoin, etc.) to allow assets and information to flow freely between different chains.
AXL is mainly used to pay network transaction fees, reward validators, participate in governance voting, and also serves as a bridge for cross-chain communication.
The role of AXL: the key to cross-chain interoperability.
The core design of Axelar is “inter-chain communication”, and AXL is the “fuel” and “incentive” in this communication process.
Every cross-chain transaction made through the Axelar network requires payment of a fee via Axelar Gas Services. This portion of the fee will be converted into AXL and either distributed or burned. Meanwhile, the verifiers on the network are responsible for ensuring the security and execution of transactions, and they earn rewards by staking AXL.
Therefore, AXL is not just a speculative asset, but also the “power system” that drives the operation of the entire cross-chain protocol.
Changes in AXL after the Cobalt upgrade
In February 2025, Axelar launched a major system upgrade called “Cobalt,” which had a profound impact on the tokenomics of AXL:
- Fee Burn Mechanism Launched: 98% of AXL transaction fees in all cross-chain transactions will be automatically burned, leaving only 2% for the community reward pool. This change means that AXL has begun to enter a deflationary model.
- Reward pool mechanism adjustment: New blockchains connecting to the Axelar network need to purchase and lock AXL in advance, injecting it into the reward pool to incentivize validators to support the new chain connection.
These mechanisms will upgrade AXL from a mere Token to a valuable asset with “network effects”.
Factors Supporting the Value of AXL
The long-term value of AXL comes from multiple aspects:
- Deflationary model: The burning mechanism reduces the total circulating supply of AXL in the market.
- Increased demand: Every time a new chain is integrated, AXL will be consumed and locked.
- Strong network scalability: In the future, Axelar will support interactions between hundreds of chains.
- Real application scenarios: Unlike tokens without application support, AXL is an asset required for actual payments and incentives.
The change in this supply and demand structure will gradually build a “moat” for the value of AXL.
Current price and market outlook
Figure:https://www.gate.com/trade/WAXL_USDT
As of June 17, 2025, the AXL price is approximately $0.407.
Note: “Wrapped Axelar”, abbreviated as WAXL, is the wrapped version of AXL, 1 WAXL = 1 AXL.
Summary
AXL, as the core Token of the Axelar network, not only undertakes technical functions but also has strong Token economics support. In the long run, its deflationary mechanism and ecological growth will jointly drive AXL to achieve value revaluation.
Of course, investing in crypto assets still involves market volatility and policy uncertainties. It is recommended that beginners understand its functions and mechanisms, and make reasonable allocations based on their own risk tolerance.
