Interoperability is one of the most competitive market sectors in crypto, drawing in top-tier talent and substantial investments. This is evident from the significant valuations and funding rounds achieved by LayerZero and Wormhole.

A Cambrian explosion of new chains is entering the market, and we believe that Axelar already has a competitive advantage in this race. The $AXL token has been liquid much longer than $W and we expect to see increasing mindshare as we wait for the $ZRO launch. Our thesis goes beyond simply defying the low-float and high-fdv narrative.  We argue that Axelar has all the ingredients to capture increasing market mindshare with best-in-class developer tooling, a sticky ecosystem, and a formidable business development strategy.

Source: Kaito – With sentiment trending towards neutrality, we expect increased attention to reprice $AXL in expectation of the $ZRO launch.

In the short term we expect to see a reprice that breaches the pre-valuation gap relative to its competitors. Looking beyond this relative value opportunity we also seek to get exposure to Axelar’s favorable supply and demand dynamics – decreasing inflation and proposing token burns later this year.