Axelar’s Cross-Chain Expansion: User Adoption and Diverse Metrics
Axelar, a leading cross-chain bridge protocol, has been experiencing impressive growth in recent months. We were intrigued by the increase in transactions, user base, and other important measures, so we decided to dig deeper into the factors behind this progress.
In this article, we will take a detailed look at the metrics that assess the performance and usage of the Axelar network and the wider interchain ecosystem. Specifically focusing on the recent year, we will provide insights into Axelar’s growth trajectory.
If you’re new to Axelar and unfamiliar with its technology, we invite you to check out our previous article providing an overview of the network HERE
Importance of Identifying the Right Metrics
To effectively gauge the impact and growth of Axelar, it’s essential to pinpoint the right metrics. You can find more about these metrics in Axelar’s article here: https://axelar.network/blog/cross-chain-metrics. It’s worth noting that Axelar’s top layer is tailored for developers to effortlessly create decentralized apps and enable cross-chain transactions using APIs and SDKs, eliminating the need to learn new programming languages. This unique capability fosters seamless communication between different blockchains, ensuring smooth interactions. Notably, the dApps on Axelar operate in a permissionless manner, and the choice of consensus mechanism doesn’t significantly affect the measurement of its growth.
Unlike other application-specific blockchains, Axelar’s growth is not solely measured by Total Value Locked (TVL), but rather by:
- Number of integrated chains: Demonstrating Axelar’s ability to bridge different blockchain ecosystems, the integration of multiple chains signifies increased interoperability, expanding its reach and potential for cross-chain transactions.
- Cross-chain transactions count: Gauging the level of adoption and activity within the Axelar network, this metric provides insights into the actual usage and effectiveness of the protocol.
- Number of active users: Monitoring user engagement offers a sense of the platform’s popularity and adoption rate. The more users engaging with Axelar, the greater the potential for network effects and further growth.
- Notional transfer volume: Tracking the total value of assets transferred across the network, this metric provides insights into the scale and magnitude of value being moved through Axelar. It demonstrates the platform’s impact in facilitating cross-chain transactions and evaluates its potential for larger-scale transfers.
- Application contracts deployed: Signifying the development and utilization of Axelar’s infrastructure, this metric reflects the growth of decentralized applications built on the platform, showcasing its ecosystem’s vibrancy and potential.
Gas Fees: Reflect network usage. As cross-chain transactions rise, $AXL gas fees increase, signaling strong activity. These heightened fees correspond to boosted rewards for token holders, aligning usage with benefits.
Navigating Axelar’s Cross-Chain Expansion Over Time
The upward trajectory of Axelar’s growth paints a promising picture for the cross-chain landscape. The impressive expansion of its transaction volume, user base, and interconnected chains underscores the protocol’s significance in enabling seamless interchain transactions. This growth is a testament to Axelar’s adaptability and the real-world demand for efficient cross-chain solutions.
The increasing number of active users reflects not only its popularity but also the growing community that recognizes its value proposition. The substantial transfer volume indicates Axelar’s role in facilitating valuable asset transfers across different chains, fueling its relevance in the broader blockchain ecosystem.
Moreover, the deployment of application contracts signifies the expansion of Axelar’s utility beyond transactions, manifesting its potential as a platform for diverse decentralized applications. With $AXL gas fees aligning rewards for token holders with the network’s activity, users are incentivized to actively participate, fostering a self-sustaining ecosystem.
In this thriving ecosystem, a multitude of innovative projects are weaving Axelar’s capabilities into their offerings. Take Squid, the pioneering liquidity overlay for Axelar, as an example. Quickswap and PancakeSwap, as main decentralized exchanges, harness the protocol’s prowess. Sommelier management protocol and vaults, along with Stride’s liquid staking protocol, showcase the diversity of applications built upon Axelar.
Exciting developments are on the horizon, with projects like ONS, the first interchain name service, and Sushi, a prominent DEX aggregator, embracing the cross-chain potential. Trust Wallet’s integration further underscores Axelar’s appeal. With each passing day, the ecosystem around Axelar flourishes, drawing in more projects and further solidifying its position as a driving force in reshaping cross-chain interactions.
Axelar’s comprehensive overview of growth over the past year not only affirms its relevance but also sets the stage for what’s to come. As more individuals and projects recognize the benefits of Axelar’s approach to cross-chain interactions, the protocol’s influence is poised to further amplify.
BlockHunters is presently active on Axelar’s testnet and mainnet, actively upkeeping a robust infrastructure comprising multiple EVM nodes and relayers. Our commitment to this endeavor is steadfast, with plans to further enhance our on-chain contributions. The conviction behind our partnership is rooted in the belief that Axelar occupies a unique niche with genuine use cases and a usage trajectory poised to expand significantly in the foreseeable future.
About BlockHunters
BlockHunters is a non-custodial staking service provider currently supporting the most promising projects in the cryptocurrency ecosystem with active nodes and different model infrastructure key components.
Based on the vision of driving technology forward and helping with security, connectivity solutions, governance insights, and community support, BlockHunters is dedicated to offering competitive and practical prowess.
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