Introduction

As a leading blockchain interoperability platform, the Axelar Network is committed to achieving seamless connections between different blockchains. AXL is the native token of the platform, and as the platform continues to upgrade and expand, many investors are interested in its future price performance. This article will focus on Axelar price prediction, analyze key factors influencing its price trends, and provide a price forecast for 2025.

The core value and role of Axelar

Axelar provides a decentralized cross-chain interoperability protocol that enables efficient and seamless asset and information exchange between different blockchains. Axelar’s main goal is to eliminate barriers between different blockchains, support decentralized application (dApp) cross-chain operations, and provide developers and users with convenient cross-chain functionality. With the launch of the ‘Cobalt’ upgrade, Axelar’s functionality and token economics are further strengthened, which has a profound impact on the value and future performance of the AXL token.

Image:https://www.axelar.network/

Key Factors Affecting Axelar’s Price

The Impact of the Cobalt Upgrade

Axelar’s recent “Cobalt” upgrade introduced a crucial change: a fee-burning mechanism. Under this new model, 98% of transaction fees on the Axelar network are sent to a burn address, while the remaining 2% is allocated to community proposals and the reward pool. By reducing the circulating supply of AXL tokens, the Cobalt upgrade could potentially push AXL into a deflationary state, driving up its price.

Expansion of Blockchain Connectivity

Axelar’s price prediction is closely tied to the expansion of its blockchain connections. Currently, Axelar has successfully integrated with major blockchains such as Solana, XRP Ledger, and TON, with plans to connect to more blockchains and Layer 2 networks (L2) in the coming months. As new blockchains integrate with Axelar, the network’s utility will expand, increasing demand for AXL tokens and potentially boosting its price.

Fee Burning Mechanism and Reward Pool

In addition to the Cobalt upgrade, Axelar has restructured its reward pool. Previously, the network relied on transaction fees to reward validators. Under the new system, existing AXL supply is used to incentivize validators, which is expected to enhance the long-term value of AXL. As new blockchains join Axelar, demand for AXL tokens will rise, while the burning mechanism continues to reduce supply, creating price support.

Market trends and external factors

The overall development trend of the blockchain industry has a significant impact on the price of Axelar. With the increasing popularity of decentralized finance (DeFi) and cross-chain protocols, Axelar, as a leading cross-chain protocol, will benefit from it. However, the overall market volatility, regulatory policies, and the performance of competing platforms may also affect the price of the AXL token. For example, competition from cross-chain solutions such as Cosmos and Polkadot may affect Axelar’s market share, thus impacting its token price.

Axelar (AXL) Token Economics Analysis: Impact of Cobalt Upgrade

Axelar Network is a leading cross-chain interoperability protocol dedicated to achieving seamless connections between different blockchain ecosystems. AXL, as its native token, plays critical roles such as paying gas fees, rewarding validators, and maintaining network security. In February 2025, Axelar underwent the Cobalt upgrade, introducing a series of new token economic mechanisms to further optimize the circulation and use cases of AXL.

Image:https://www.axelar.network/blog/cobalt-tokenomics-upgrade

1. Post-Cobalt Upgrade AXL Tokenomics

Following the Cobalt upgrade, AXL’s tokenomics revolve around three key aspects:

(1) Gas Fee Payments

Users must pay AXL as gas fees for cross-chain transactions on the Axelar network. A portion of these AXL fees is burned, reducing the circulating supply and creating a deflationary effect.

(2) New Blockchain Onboarding

When new blockchains integrate with Axelar, they must purchase and lock AXL tokens in the Amplifier Reward Pool to gain access to the network. This mechanism ensures that new integrations contribute to AXL demand and price appreciation.

(3) Amplifier Reward Pool Distribution

AXL tokens in the reward pool are distributed to Interchain Verifiers, who secure and validate transactions between new blockchains and Axelar. This incentivizes decentralization and network security while reducing AXL’s market circulation.

2. The impact of Cobalt upgrade on AXL price

Several key factors influence AXL’s price following the Cobalt upgrade:

(1) Reduced Supply (Deflationary Pressure)

• Since a portion of AXL gas fees are burned, the token’s supply will gradually decrease over time, potentially pushing prices higher.

(2) Increased demand

• New blockchains integrating with Axelar must acquire and lock AXL, increasing market demand.
• The growth of cross-chain transactions also means more AXL is used to pay gas fees, further increasing demand.

(3) Validator Incentive Enhancement

• Validators earn rewards by staking AXL, which helps to increase the staking rate of AXL, reduce the circulating supply in the market, and provide support for the price.

Axelar price prediction analysis

Based on Prophet model projections analyzing the past 100 days of data, WAXL’s price is expected to hover around $0.40 in May. (This prediction is not financial advice. Investors should assess risks before making investment decisions.)

Risks Investors Should Consider

While Axelar’s future looks promising, investors should be aware of the following risks:

• Market Volatility: The high volatility of the cryptocurrency market may lead to significant fluctuations in the AXL price in the short term.

• Competitive pressure: Projects such as Cosmos and Polkadot competing in the field of cross-chain interoperability may pose a threat to Axelar’s market share.

• Regulatory Uncertainty: Governments around the world may introduce new cryptocurrency regulatory policies, which could affect the operation of Axelar and the demand for the AXL token.

Conclusion

In summary, Axelar, as a decentralized cross-chain protocol, possesses strong growth potential in the coming years due to its technological advantages and tokenomics improvements. The “Cobalt” upgrade has reduced AXL’s circulating supply while increasing demand, which could drive its price upward. However, competition from other projects and regulatory uncertainties remain key risks. Investors should carefully consider these factors and align their investment decisions with their risk tolerance.