Top US crypto exchange Coinbase has added sudden support for proof-of-stake blockchain Axelar, sparking a rally for its native token, AXL.
Axelar is a project built using the Cosmos SDK (software development kit), and aims to deliver cross-chain communication between numerous other blockchains.
Its functions include making cross-chain token transfers, calling smart contracts, or sending arbitrary messages from one chain to another.
Developers can use Axelar to build decentralized applications (dApps) that allow users to interact with assets or applications on multiple chains within one platform.
Says Axelar’s whitepaper,
“Axelar enables dApp builders to add cross-chain functionality to their applications, through a suite of APIs. These APIs allow a dApp user to send a message containing arbitrary data cross-chain, from the source chain to the destination chain. Thus, a dApp may call a smart contract on the destination chain, and attach general data information to be used as input for the smart contract call.”
Axelar currently connects to Ethereum (ETH), Cosmos (ATOM), Avalanche (AVAX), Polygon (MATIC) BNB Chain (BNB), Osmosis (OSMO), Fantom (FTM), Moonbeam (GLMR), Juno (JUNO), Injective (INJ), Secret Network (SCRT) and Kujira (KUJI).
Coinbase announced it would be adding support for Axelar early on Monday, and went ahead with listing Tuesday morning.
Following Coinbase’s initial announcement, AXL abruptly bounced from the $0.59 to $0.80, a 35% gain in a matter of hours.
At time of writing, AXL has cooled off, but has held on to most of its gains, currently trading at $0.72 with a market cap of $111 million.
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Featured Image: Shutterstock/Marko Aliaksandr/Andy Chipus