How Axelar Benefits from Project Guardian & DAMA 2
Singapore’s MAS has launched the next phase of Project Guardian with DAMA 2, focusing on cross-chain tokenized asset issuance and settlement. Axelar Network was chosen as the interoperability layer for this framework — a move that brings several clear benefits to the AXL token.
+ Increased network usage → higher AXL demand
All cross-chain messages and transactions processed through Axelar require fees paid in AXL. As institutions adopt DAMA 2, network activity rises, directly boosting token demand.
+ Institutional adoption boosts on-chain volume
Major banks and financial institutions participating in Project Guardian will route tokenized assets across chains via Axelar, increasing overall transaction flow and fee consumption.
+ Stronger credibility and wider integrations
Being selected for DAMA 2 elevates Axelar’s status as a trusted infrastructure provider, encouraging more RWA, DeFi, and Layer-2 projects to integrate — indirectly strengthening AXL’s value proposition.
+ More staking demand reduces circulating supply
Higher network activity incentivizes staking to secure the chain, locking more AXL and reducing market sell pressure.
+ Positioned at the core of the growing RWA sector
As RWAs become one of the biggest narratives for 2025+, Axelar’s role as a cross-chain standard places AXL in a strong long-term growth position.
