27 Jan, 2026
2 minutes
Axelar (AXL), also known as Axelar Network, is a decentralized interoperability network. This network has been created with the sole purpose of connecting various blockchain systems, thus enabling seamless communication, transfer of assets, and execution of smart contracts. With the crypto space growing and various blockchain systems, including Ethereum, Cosmos, Avalanche, BNB, Polygon, Optimism, Arbitrum, and many more, emerging independently, the need for a cross-chain infrastructure has never been more significant. Axelar has come up with a unique message passing layer, along with a decentralized validator set and cryptography, to solve this problem.
The AXL crypto token is used for security, governance, and transaction fees, and cross-chain operations. With the increasing adoption of Axelar coin by dApps, bridges, and wallets, Axelar has emerged as a leading interoperability network in the blockchain space.
This article will delve into the functionality of Axelar coin, the creator of Axelar bridge, what makes Axelar unique, the functionality of the AXL crypto token under the new tokenomics, and the comparison of Axelar with other cross-chain systems.
Axelar functions as a decentralized interoperability network that enables different blockchains and applications to communicate with each other. Rather than using conventional bridges that frequently depend on centralized custody or multisig solutions, Axelar coin has designed a trust-minimized, validator-secured messaging layer that can facilitate the transfer of assets, the execution of cross-chain smart contracts, and the synchronization of application state between different blockchain networks.
In other words, Axelar coin can be considered the "internet layer" for blockchains, allowing any blockchain to communicate with any other blockchain through a standardized communication framework.
Each blockchain connected to Axelar crypto has a gateway smart contract, which is used to communicate messages between chains. When a user or dApp wants to send a transfer or a cross-chain command, the following happens:
Chain A sends a request to its gateway
The gateway locks, burns, or registers an event
The event is verified by Axelar validators
Chain B's gateway performs the corresponding operation
This gateway model provides consistency between chains without forcing them to change their consensus logic.
Axelar is constructed as a Proof-of-Stake (PoS) system, which means that the validators are required to stake AXL coin in order to secure the network. Their tasks include:
event verification on source chains
voting and achieving consensus on cross-chain messages
authorization of execution on destination chains
If the validators act in a malicious manner, they can be slashed. This economic security system is much more robust than the centralized bridges, which are secured by a group of signers.
The most important innovation of Axelar coin is its general message passing, which enables developers to create cross-chain applications without having to create bridges between blockchains individually. This enables complex interactions such as:
Minting an NFT on Polygon, triggered by a contract on Ethereum
Executing a swap on Avalanche, initiated by a wallet on Cosmos
Sending governance instructions across multiple blockchains
Conducting multi-chain airdrops and automated strategies
Developers can deploy their applications everywhere by simply developing once.
AVM, which was created to increase programmability on AXL coin, enables developers to use existing smart contract tooling to create cross-chain logic. Applications built on top of the AVM can:
orchestrate complex workflows across numerous chains
optimize the routing of liquidity
deploy smart contracts that operate on multiple chains with unified logic
automate bridging and settlement
This means that AXL coin is no longer just an interoperability layer, but a programmable one.
For users, Axelar crypto provides a simple and intuitive bridge interface. Behind the scenes:
assets are locked or burned on the source chain
validators verify the event
assets are minted or released on the destination chain
The main difference is security, which is provided by Axelar's PoS validator network to mitigate risks typically found in multisig Axelar bridge.
Axelar crypto can be integrated directly with dApps, wallets, and DeFi protocols through SDK and API support, which enables:
seamless cross-chain swaps
liquidity routing
unified UX for multi-chain platforms
native support inside wallets and ecosystems
By providing abstraction from cross-chain complexity, Axelar enables developers to focus on product logic rather than interoperability engineering.
Axelar was started by Sergey Gorbunov and Georgios Vlachos, two of the earliest contributors to the Algorand blockchain and experts in cryptography and distributed systems. The experience of developing secure consensus protocols for blockchain networks has greatly influenced AXL coin development as a trust-minimized and interoperable network rather than a bridge.
Axelar was incubated by MIT alumni and researchers, providing it with solid foundations and a focus on verifiable security models. The early development of Axelar has been aided by collaboration with some of the best blockchain engineers, cryptographers, and protocol developers in the industry.
AXL crypto has received funding from some of the best venture capital funds in the industry, including:
Polychain Capital
Dragonfly Capital
North Island Ventures
Galaxy Digital
The Axelar bridge launched in 2022, and it has quickly grown to become one of the most integrated cross-chain networks in the industry. The original vision of Axelar is still relevant today: to create a unified Web3 ecosystem where applications can work seamlessly across any blockchain without any fragmentation or trust issues.
What makes AXL crypto unique in the interoperability space is that it provides a decentralized, programmable, and developer-friendly cross-chain communication layer. Unlike most traditional blockchain bridges, which are based on a centralized signing process or isolated connectivity between blockchains, Axelar bridge is designed to create a general framework that is capable of connecting any blockchain with any other blockchain.
Most blockchain bridges are based on a multisig wallet or validator set, which is a single point of failure. Axelar crypto , on the other hand, uses a Proof-of-Stake validator network, where dozens of independent validators are used to secure message passing, thus greatly reducing the risk and aligning with the security standards of L1 blockchains.
However, Axelar crypto does not just stop at moving assets. It allows apps to transfer arbitrary data between blockchains, which means that it will be possible to do:
Cross-Chain Governance
Multi-Chain Smart Contract Execution
Decentralized Exchanges that work across multiple chains
Unified User Interfaces for Multi-Chain Apps
Developers will be able to deploy a single app that will work across many chains, without having to re-code it to work on each chain individually.
With the AVM, Axelar crypto makes the programmability of the interoperability layer possible. This will enable protocols to include advanced automation, routing, and multi-chain capabilities that were not feasible before.
Axelar crypto is compatible with dozens of blockchains like Ethereum, Avalanche, Cosmos, Polygon, Arbitrum, Optimism, Fantom, and many more. This makes Axelar one of the most interconnected networks in Web3. It is also a part of various DeFi, NFT, gaming, and Web3 infrastructure projects.
AXL crypto helps to overcome the fragmented nature of Web3 through:
a single integration path for developers
standardized connectivity to all major chains
consistent UX, regardless of the network used
This makes multi-chain development a streamlined process, rather than a complex engineering challenge.
The AXL coin is the native asset of the Axelar Network and plays a crucial role in the security, governance, and cross-chain functionality of the Axelar Network. As Axelar continues to develop and improve its interoperability capabilities, especially with the Axelar Virtual Machine, the AXL token's economic model has evolved to ensure long-term sustainability and network adoption.
The Axelar Network's Proof of Stake model requires users to stake their AXL tokens to participate in the network's consensus mechanism. The amount of AXL staked by users determines their voting power in validating cross-chain messages. Any malicious activity will result in the user losing their AXL tokens. This creates a direct relationship between the network and the economic incentives of the users.
The AXL tokens are used to pay for transactions within the network, including executing cross-chain messages, executing gateway logic, deploying AVM contracts, and computing multi-chain functions. This makes AXL the economic fuel of the Axelar Network.
AXL token holders also contribute to the decentralized nature of Axelar network, voting on the direction of the network's development. These voting decisions could include the addition of new chains, parameter changes, feature upgrades, or changes in cross-chain routing. This ensures the network's longevity and reliability as a neutral piece of public infrastructure.
Tokenomics have also been greatly improved, making Axelar token, AXL, more useful and increasing its long-term viability. Inflation will gradually decrease, focusing on sustainable growth while continuing to incentivize validators. AXL rewards will continue to increase their reliance on network usage, and the Axelar Virtual Machine will create further demand for AXL. New fee capture methods will also ensure AXL benefits from the increasing cross-chain traffic within the network.
With more and more blockchains and decentralized applications utilizing Axelar's cross-chain technology, the demand for AXL crypto will continue to rise. AXL is used for deploying AVM programs, for cross-chain execution fees, and for validators who stake their AXL tokens.
Axelar (AXL) is listed on a broad range of centralized as well as decentralized platforms. This means users have several ways to access the asset. With the growth of Axelar's interoperability network, the liquidity of AXL crypto is increasing on the top ecosystems.
The majority of users will get their Axelar (AXL) through centralized exchanges. This is because they are usually the most accessible option. Centralized exchanges support fiat deposits, card purchases, bank transfers, as well as crypto-to-crypto transactions. These are the best option for new users.
However, users who want to use decentralized swaps to get their Axelar (AXL) will have an option. These are platforms that do not require users to create an account, nor do they require any KYC verification. The platforms will enable users to make direct swaps between their wallets. This means users will not have to share their personal information.
In addition to this, AXL can also be found on various decentralized exchanges (DEXs) that support chains that have integrated Axelar. This helps users to buy AXL coin while at the same time retaining full control over their private keys and being able to interact with smart contracts directly.
In order to make it easier for users to understand how to go about buying AXL crypto, here are some of the most common ways to go about it:
Centralized exchanges (CEXs): Best option for beginners and those who prefer high liquidity trades
Non-custodial swap platforms: Quick and private swaps to personal wallets
Decentralized exchanges: On-chain trades for those who prefer to retain full wallet control.
Regardless of the method chosen, it is imperative that the buyer ensures that their wallet supports AXL crypto on the correct network. This is due to the fact that Axelar supports multiple ecosystems, and therefore, the correct chain must be chosen to ensure secure transfers and prevent loss.
Axelar's place in the interoperability ecosystem is special in that it provides a more decentralized and programmable solution compared to traditional bridges. Nevertheless, like all infrastructure protocols, Axelar has its pros and cons. This helps in understanding the advantages that Axelar coin provides compared to other technologies in space.
Most cross-chain bridges use a system of multisignature custodians, small validator groups, or even centralized operators. Axelar, on the other hand, uses a Proof-of-Stake validator network, which provides more economic security in the verification of messages.
Axelar is not just limited to the transfer of tokens. It is a universal message passing system that allows applications to communicate with each other across chains at the smart contract level. It is possible to create dApps that work seamlessly with Ethereum, Cosmos, Avalanche, Polygon, and more without the need for separate bridges.
AVM enables programmability on the interoperability layer, and this enables the capability for complex logic such as multi-chain orchestration, routing, etc., which cannot be performed on most bridges or interoperability protocols.
With support for dozens of blockchains, Axelar has one of the largest integration networks in the Web3 world, and DeFi platforms, wallets, DEXs, and NFTs are actively using Axelar to unite their multi-chain experiences.
Although Axelar greatly eases the development of cross-chain applications, there are some additional design and testing aspects to be considered for multi-chain dApps compared to single-chain dApps.
Since Axelar supports verification and execution across various blockchain platforms, cross-chain transactions are more costly compared to single-chain transactions. However, they are competitive compared to other decentralized interoperability alternatives.
There are gateway contracts for every blockchain network used. In case of congestion, latency, or execution limits in the native environment of a blockchain, cross-chain operations might be impacted.
Axelar is a decentralized interoperability network that facilitates safe communication, asset transfer, and execution of smart contracts across various blockchains. The coin that facilitates Axelar's security, governance, and cross-chain functionality is called AXL.
Axelar has a bridge, but it is much more than that. Axelar provides developers with a message passing layer and a programmable virtual machine. This means that developers can create multi-chain applications, not just token bridges.
The coin, AXL, is used to cover staking costs, network fees, cross-chain communication security, and participating in governance decisions. Validators and delegators use AXL to verify cross-chain messages and provide security to the network.
Axelar employs a decentralized Proof of Stake validator system instead of multisig and centralized solutions. It also enables generalized cross-chain messaging, programmability via the Axelar Virtual Machine, and extensive connectivity to dozens of blockchains.
The AXL token is available Exolix and on the major centralized exchanges, decentralized exchanges on the supported chains, and non-custodial swapping platforms. Users can buy the token using fiat, cryptocurrency pairs, or wallet-to-wallet swapping, depending on the exchange they prefer to use.
