The cryptocurrency ecosystem is a dynamic structure consisting of hundreds of different blockchains, each with its own advantages and technologies. This situation has made certain blockchains more attractive according to specific needs. However, it has also led to fragmentation, which makes data and asset exchange between different networks difficult or even impossible. Axelar aims to offer an innovative solution to these challenges by enhancing inter-blockchain interaction. In this article on Kriptokoin.com, we will explore what is AXL Coin, Axelar technology, and price comments.
What is AXL Coin?
AXL Coin is the native cryptocurrency of the Axelar network, an infrastructure platform that enables different blockchains, assets, and applications to interact with each other. The Axelar network uses the Proof-of-Stake (PoS) consensus mechanism and provides developers the ability to create not only smart contracts but also decentralized applications (dApps). Users can send and receive tokens within the Axelar network using these dApps.
The distinction of Axelar lies in integrating its smart contracts with the Axelar Virtual Machine (AVM). AVM is a cross-chain gateway protocol that connects the Axelar network with more than 50 other blockchains. This allows users to seamlessly interact with other blockchains. These interactions include cross-chain token transfers, executing smart contracts on another blockchain, or sending and receiving general messages to and from other blockchains.
Axelar’s Technology
The Axelar Virtual Machine, built on Cosmwasm technology, provides a programmable layer that facilitates full-stack interoperability. This layer offers services and tools that automate the deployment and management of smart contracts across various blockchain ecosystems.
As the foundation of this system, Axelar introduces two more products, including the Interchain Amplifier. This service enables new blockchains and crypto protocols to connect to the Axelar network, thereby joining the network. This facilitates easier integration with more blockchains and protocols, strengthening the network’s position.
Axelar Ecosystem
Axelar has a broad range of projects and partnerships to address interoperability challenges. The ecosystem spans various sectors, including the rapidly growing DeFi sector. Leading protocols like SushiSwap and StakeDAO are among these sectors. Additionally, other sectors such as infrastructure, gaming, non-fungible tokens (NFTs), and payment protocols are included in the goal of ensuring seamless interoperability.
On March 1st, Binance, one of the leading cryptocurrency exchanges, announced the listing of the Axelar token. This announcement led to a significant increase in the token’s price. The price rose by more than 80% within a few hours, resulting in a trading volume exceeding $80 million on Binance. This listing is a significant step for Axelar as Binance has the highest number of users and trading volume. This facilitates greater accessibility of the AXL token to a wider audience, potentially offering positive prospects.
AXL Coin Price Prediction
The price of AXL Coin is currently at $0.6021. Axelar’s recent price movements showed a strong upward movement by breaking out from a descending trend line. After this breakout, the price rose rapidly but then started to decline after encountering a certain resistance. The current price level indicates a zone where sellers are entering the market.
Considering Axelar’s strong increase of 200% from its recent low price, a healthy correction is expected. Analysts suggest that AXL Coin may fluctuate in the upcoming period given the current market conditions and advise investors to be cautious. Such rapid price increases often result in short-term corrections, and investors need to closely monitor market dynamics.
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