Multi-chain ecology has become an important trend in the current development of blockchain. In a multi-chain ecology, users are limited by the liquidity brought by applications that only support specific blockchains, and developers face challenges in project development due to the lack of unified development tools. Cross-chain interoperability has become the key solution to these problems.

Binance Research Institute recently released a report titled "Decoding Cross-Chain Interoperability", which analyzed the current development status of Web3 interoperability. The report positioned Axelar (AXL) as the fastest developing cross-chain network. The report can be found at https://www.binance.com/zh-CN/research/analysis/decoding-cross-chain-interoperability.

Here is the key summary of the report from Binance Research, revealing the significant superiority of Axelar (AXL) in the cross-chain field compared to other major players.

Axelar (AXL) is the fastest growing cross-chain network

Compared to other networks that have experienced short-lived popularity due to airdrop rumors or other activities, Axelar has demonstrated sustained and rapid growth. According to Binance data, Axelar's 30-day trading volume is now twice that of Wormhole and nearly eight times that of Chainlink CCIP.

Since 2023, the popularity of Axelar has skyrocketed, with both transaction volume and active user numbers increasing. This growth is mainly attributed to the implementation of its General Message Passing (GMP) functionality, which supports complex cross-chain function calls and state synchronization. In addition, in May 2023, GMP began supporting interaction between Cosmos and EVM chains, which was a major improvement for Axelar.

In the 2023 data, the impact of GMP is evident: about 72% of transactions involve GMP communication, and about 93% of active users are using GMP, highlighting the indispensable contribution of GMP and its importance to Axelar's growth.

Axelar (AXL) is the most widely connected cross-chain network

With the help of General Message Passing (GMP) functionality, Axelar facilitates advanced cross-chain communication between ecosystems such as Cosmos and EVM. According to Binance's statistics, among the 60 chains supported by the entire cross-chain network, Axelar supports a total of 53, far ahead of other networks.

Axelar partners with top projects in key verticals

Binance's report specifically mentioned several heavyweight partners of Axelar, including:

· Ondo Finance is a leading on-chain treasury bill issuer in the United States. Ondo Finance utilizes Axelar's GMP as a cross-chain bridge to integrate USDY liquidity between different chains.

· Axelar has recently partnered with Microsoft, marking its successful entry into the Azure market. With this partnership, developers can use tools such as AxelarJSSDK and GMP to provide advanced hybrid blockchain solutions. Given Azure's widespread use worldwide, this collaboration can greatly promote Axelar's development and expansion.

· Squid acts as a cross-chain liquidity router in the Axelar network. Major wallet providers, including MetaMask, Trust Wallet, and Blockchain.com, have integrated the Squid protocol, making Axelar the only messaging protocol adopted by these platforms.

· and Morgan Stanley's Onyx, Mastercard, dYdX, etc.

Table Highlights Comparison

· Among all the networks reviewed by Binance, Axelar has partnered with the most top projects.

· According to Binance data, Axelar's 30-day trading volume is twice that of Wormhole and nearly eight times that of Chainlink CCIP.

· Fully diluted valuation (FDV) is a better standard for evaluating the value of project tokens than market capitalization. Compared to the book value of Wormhole and LayerZero, whether it is FDV ($800,000) or market capitalization ($300,000), Axelar (AXL) is significantly undervalued.

· Among all the networks reviewed by Binance, Axelar has the highest number of connected chains.

Security and Cross-Chain Metrics

In traditional PoS systems, due to the concentration of rights, weight delegation may lead to power centralization, which is different from Axelar. In order to improve security, Axelar adopts measures such as secondary voting and frequent key rotation. Secondary voting naturally suppresses the concentration of voting rights, thereby improving decentralization. Validators also regularly rotate their key shards to provide an additional layer of security protection and prevent potential vulnerabilities.

In addition, the Axelar gateway uses rate limiting to restrict the amount of assets that can be transferred within a certain time interval. These measures work together to ensure the integrity and security of the network. Binance pointed out that "Axelar has highly decentralized characteristics, with 75 validators participating. Its improved PoS mechanism introduces innovative features such as secondary voting and key rotation, greatly enhancing network security."

The first generation cross-chain bridge adopted the "lock + mint" model, which resulted in losses of over 2 billion US dollars due to security vulnerabilities. This has led to the emergence of a second generation cross-chain communication protocol with higher security.

Binance emphasizes: "These new solutions have prompted the evaluation standards for cross-chain network performance to shift from total locked value (TVL) to more based on transaction volume and message transmission quantity." Axelar will become a leader in this trend starting in the second quarter of 2023, developing a series of cross-chain data metrics and analysis methods.

About Axelar

Axelar is a leading Web3 interoperability platform that connects over 50 blockchains through a secure and programmable network, providing internet infrastructure for the next generation of global super applications. Axelar offers scalable cross-chain solutions for various partners, from Uniswap to Microsoft. Users can operate any asset with just one click, while developers can develop across multiple blockchains, experiencing the same ease as building on a single blockchain, thanks to a concise API and an open, permissionless ecosystem of tools and service providers. Axelar is supported by Binance, Coinbase, Dragonfly, Galaxy, Polychain, and others.

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