What is Axelar (AXL) and How Does It Work In 2024?

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Axelar is a revolutionary blockchain project striving to solve the interoperability issues currently plaguing the cryptocurrency ecosystem.

Powered by its native AXL token, the Axelar network provides an innovative infrastructure enabling seamless communication between different blockchains.

With its cross-chain capabilities and developer tools, Axelar aims to truly unleash the potential of the decentralized web. But how exactly does Axelar work, and what purpose does the AXL coin serve? Keep reading to find out.

What is the purpose of Axelar (AXL)?

Axelar AXL coin

The Axelar network runs using a proof-of-stake consensus mechanism secured by validators. Validators validate transactions and propose new blocks, ensuring the safe operation of the network. They are rewarded for this work through inflation of the AXL token. AXL coins also serve as “gas” for paying transaction fees within the Axelar ecosystem.

In addition, AXL tokens grant governance rights to their holders. Through staking, users can participate in voting on network proposals and parameter changes. This creates a decentralized governance model where the community guides the network’s evolution. AXL ownership also allows sharing in the growth of the Axelar economy over time. And thanks to services like EXEcrypto, anyone can now get breaking crypto news in seconds from their smartphones.

How does Axelar (AXL) work?

Axelar functions as a universal blockchain “interpreter” thanks to its unique three-tier architecture:

  • A dynamic pool of independent validators runs nodes to secure the network using a proof-of-stake consensus protocol.
  • Smart contract gateways serve as bridges between Axelar and outside blockchains like Ethereum, Cosmos, and more. Validators constantly monitor these gateways to detect cross-chain transactions.
  • Developer tools like APIs and SDKs empower builders to create powerful cross-chain dApps and DeFi protocols with just a few lines of code.

This innovative stack allows any blockchain user, asset, or dApp to seamlessly interact with others. With Axelar translating in the background, cross-chain operability becomes almost effortless – unlocking endless new applications for the decentralized economy.

Does Axelar (AXL) have a future?

Axelar AXL token future

With its innovative cross-chain infrastructure now live on mainnet, Axelar is poised for significant growth and adoption in the coming years.

As decentralized applications continue proliferating across different blockchains, the need for seamless interoperability will only increase. Axelar is uniquely positioned to capture this demand.

Major milestones like integrating with leading networks like Cosmos, Polkadot and Ethereum show Axelar’s strategic progress.

Partnerships with heavyweight projects also signal industry endorsement. And the protocol’s security-centered design means it can withstand the test of time as new threats emerge.

Provided Axelar delivers on its potential to truly simplify blockchain communication, widespread use cases and integration should drive meaningful appreciation of the value of its underlying AXL token long-term. The future remains bright for this pioneering project.

When Axelar (AXL) launched?

Axelar entered the crypto scene in 2021 with a public mainnet launch on January 25th. This marked the first time developers could begin building interoperable applications using Axelar’s novel protocol and SDKs.

Since then, steady progress has been made expanding Axelar’s reach and capabilities. Major milestones like new partnership announcements, token listings, network upgrades and integrator program launches have occured throughout 2023.

Is Axelar (AXL) a scam?

Axelar AXL coin scam

All signs point to Axelar being a legitimate project with honest ambitions.

The protocol is fully open-source with active development, major crypto figures and institutions are part of ongoing funding rounds, and the team has delivered continuously on their public roadmap commitments so far.

Importantly, the economic model around staking, fees, and decentralization through community involvement give confidence the network is designed to operate honorably long-term.

As with any investment, perform thorough research – but authentic partnerships, technical deliverables and transparent team operation suggest Axelar is the real deal.

Is it safe to invest in Axelar (AXL)?

Like all cryptocurrency investments, purchasing AXL tokens carries risk. The market remains highly volatile and new protocols have a chance of failing to gain traction over time.

However, Axelar’s strong technical differentiators, experienced team and clear road ahead for adoption suggest it offers one of the safer speculative plays in the blockchain industry.

For less daring investors, options like staking from major custodians can reduce counterparty concerns.

And with AXL listing on all major centralized exchanges, liquidity risks are lower than smaller cryptos. Axelar appears a sound long term investment opportunity, but only allocate funds you can afford to lose.

Is Axelar (AXL) worth it? AXL Price 2024

Axelar AXL coin price 2024

AXL entered the market with an initial valuation of around $1B and has grown considerably since. At the time of writing its fully diluted market cap sits around $1.3B with the price per coin at just under $1.20. Major adoption milestones still lie ahead.

If Axelar manages to capture even a small percentage of the potential multi-chain market as the decentralized future takes shape, a 5-10x return would not be unrealistic within the next couple of years.

With development still in early stages and integrations ramping up quarterly, patience and a long time horizon will likely be rewarded for investors who believe in Axelar’s vision.

Where to buy Axelar (AXL)?

The most popular centralized exchanges currently supporting AXL trading pairs include:

For those exchanges, you can fund your account with fiat or other crypto coins through their onboarding processes and purchase AXL directly.

Some decentralized exchanges like Osmosis also offer direct swaps for AXL if you hold certain coins within a compatible wallet.

Exchanges are listed on the Axelar website along with helpful guides. Just remember to carefully research any platform before depositing funds or tokens.

How to sell Axelar (AXL)?

Axelar AXL token sell

Selling AXL follows similar steps but in reverse:

  • Deposit your AXL holdings to the exchange of choice that supports the trading pair you want to use (usually AXL/USDT, AXL/BTC etc).
  • From your exchange spot account, place a sell order above the current ask price.
  • Your order will be matched and filled by a buyer, crediting your exchange account with the sale proceeds in your selected coin.
  • Withdraw those proceeds back to your personal wallet when you want. Be sure to check network fees and processing times for your selected coin.

How to stake Axelar (AXL)?

Staking AXL directly supports the Axelar network by bonding tokens to validator nodes that process transactions. It’s an easy way to earn additional passive yield on your investment. Currently the following options exist:

  • Stake through the Axelar dashboard using a supported web wallet like Keplr or Zonky.
  • Delegate tokens to a validator on the Axelar network website for automatic staking and payouts.
  • Use centralized staking services from major crypto exchanges that support AXL.

Staking typically requires a minimum amount, has slashing risks if validators misbehave, and earns 5-15% APY depending on the validator. Do proper research before choosing where to stake.

How to mine Axelar (AXL)?

AXL is not mined in the traditional sense like Bitcoin. Instead, new tokens are produced through staking rewards paid out to validators securing the network.

The best way for regular users to obtain AXL is therefore to purchase it on an exchange or earn staking rewards by delegating to validators.

True “mining” was only done in Axelar’s initial pre-launch phase where select partners were allocated tokens for participation in network testing and deployment.

For everyone else, the staking process provides the main way to earn more AXL tokens over time through securing network transactions and validating blocks.

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