AXL Price Drops 15% as Circle Acquires Axelar Development Team

The native token of the Axelar network, AXL, experienced a sharp decline of approximately 15% following a major business development. Circle, the issuer of the USDC stablecoin, has acquired a significant portion of the core development team behind the cross-chain interoperability protocol. This strategic move by Circle is aimed at bolstering its own blockchain infrastructure and cross-chain capabilities. However, the deal notably excludes the Axelar network's token and its associated treasury, leaving the future development and governance of the AXL ecosystem in question. The market reaction was immediately negative, reflecting investor concerns over the project's trajectory after the loss of key technical talent to a larger industry player. The situation highlights the ongoing consolidation and talent wars within the cryptocurrency sector, where established companies often absorb teams from smaller protocols.