Which Crypto Works with Axelar? Top Blockchain Interoperability Solutions
In the rapidly evolving world of blockchain, interoperability has become a critical challenge. Axelar Network emerges as a premier solution, providing secure cross-chain communication. A common question among developers and investors is: which crypto works with Axelar? This article delves into the cryptocurrencies and digital assets that are natively compatible and can be seamlessly transferred across chains via Axelar's decentralized network.
Understanding Axelar Network's Role
Axelar is a full-stack interoperability layer that connects multiple blockchain ecosystems, allowing them to communicate and share value. It acts as a universal "web" for blockchains, enabling dApps to operate across various environments without needing custom integrations. The network's security is underpinned by a proof-of-stake consensus mechanism, ensuring trustless cross-chain transactions.
Core Cryptocurrencies Powering the Axelar Ecosystem
- The Native AXL Token: The fundamental cryptocurrency working with Axelar is its native utility token, AXL. It is used for paying network fees, securing the protocol through staking, and participating in governance decisions. AXL is the lifeblood of the ecosystem, incentivizing validators and facilitating cross-chain requests.
- Wrapped Assets (axlTokens): Axelar enables the creation of cross-chain compatible wrapped assets. For example, axlUSDC, axlETH, or axlWBTC are representations of major assets like USDC, Ethereum, and Bitcoin that can move freely across chains connected to Axelar. These are prime examples of crypto that works with Axelar.
- Connected Chain Native Tokens: Axelar supports direct interoperability with numerous Layer 1 blockchains. This means the native tokens of chains like Ethereum (ETH), Avalanche (AVAX), Polygon (MATIC), Fantom (FTM), and Cosmos (ATOM) can be bridged and utilized within the Axelar ecosystem.
Major Blockchain Protocols and Assets Compatible with Axelar
The network's strength lies in its extensive partnerships. Key blockchain interoperability protocols and their assets that integrate with Axelar include:
- Cosmos Ecosystem: Assets like OSMO (Osmosis) and various Inter-Blockchain Communication (IBC) protocol tokens.
- EVM-Compatible Chains: Tokens from Polygon, Avalanche, and Binance Smart Chain (e.g., BNB).
- Beyond EVM: Axelar also connects to non-EVM chains like Terra Classic (LUNC), Algorand (ALGO), and others, significantly expanding the universe of supported cryptocurrencies.
Practical Use Cases: How These Cryptos Work with Axelar
The tokens compatible with Axelar unlock real-world utility:
- Cross-Chain Decentralized Finance (DeFi): Users can supply axlUSDC as liquidity on a DApp on Avalanche, while borrowing ETH on Ethereum, all within a single interface.
- Unified Liquidity Pools: Protocols can aggregate liquidity from multiple chains, reducing fragmentation and slippage.
- Interchain NFT and dApp Functionality: Developers can build applications where NFTs or functionalities span across different blockchains seamlessly.
Conclusion: Building a Connected Crypto Future
So, which crypto works with Axelar? The answer encompasses its native AXL token, a wide array of wrapped cross-chain assets (axlTokens), and the native currencies of all integrated blockchains. By supporting these diverse cross-chain crypto assets, Axelar Network is not just a bridge but a foundational platform building the infrastructure for a truly interconnected blockchain universe. For anyone looking to operate in a multi-chain future, understanding and utilizing these compatible cryptocurrencies is essential.