Since the $AXL token launch, how have wallets that bought $AXL used it? Are most wallets hodling or trading? What is the average holding period for wallets buying $AXL in the last month?

Generally speaking, have users kept $AXL on exchange (in their Osmosis wallet) or have they bridge to other places? Analyze $AXL balances on Osmosis as compared to native on Axelar. How have these balances changed over time?

An Overview of AXL Token Economics

Introducing the native token enabling decentralized interoperability via Axelar network [1]

What is Axelar?

Axelar is the universal overlay network, securely connecting all blockchain ecosystems, applications, assets and users to deliver Web3 interoperability. It is a full-stack decentralized transport layer, meeting growing demand for cross-chain services with maximum blockchain security and composability.

Axelar has three components:

1. A decentralized network.
2. A set of gateway smart contracts that provide the connectivity between the Axelar Network and its interconnected external chains.
3. A software development kit (SDK) of protocols and APIs.

In short, Axelar is blockchain infrastructure that enables users who own assets on one blockchain to use these assets in any application on any other blockchains, securely. It allows developers to build on the best platform for their use case, providing connections to users, assets and data on every other ecosystem, without excessive gas fees, additional development costs or rolling out their own cross-chain infrastructure. Like the overlay networks that provide core internet infrastructure, Axelar provides an ecosystem with services that are otherwise unavailable, expensive or inefficient. It sits on top of other networks, and by virtue of having global “visibility” into other networks, it can provide better quality of service.

What is the AXL Token?

AXL is the native token of the Axelar network. The AXL token supports four critical functions.

1. AXL is a medium for transaction fees and any other fees for network usage, paid by users to the validators that run the network.
2. AXL is used by holders and their proxies to stake and exercise governance over proposals (such as a parameter change or protocol upgrade).
3. AXL enables incentives to support the decentralized Proof-of-Stake consensus that secures the network and validates transactions on chain. Validators receive AXL rewards as incentives to continue to secure the network. These incentive rewards are distributed programmatically, per rules encoded in network protocols, and are inflationary, i.e., each protocol reward increases the total token supply.
4. AXL is used to reward ecosystem builders and community contributors.

AXL Token Economics

The token economics for AXL are geared towards the creation of a token economy that supports Axelar network in achieving the following key outcomes.

1. Security. A proper incentives model with healthy staking rewards that encourages a wide validator set to operate secure nodes.
2. Decentralization. A token distributed across a wide set of holders who will delegate to a decentralized set of validators and contribute to governance decisions.
3. Longevity. The token economics are designed to encourage general maintenance of all critical Axelar-related processes (such as block validation).
4. Ecosystem growth. The token incentivizes dApp builders to use Axelar APIs for cross-chain development.

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$AXL Transfer Situation (Time Based)

$AXL Transfer Situation (Overall)

$AXL Transfer Situation (Osmosis)

$AXL Transfer Situation (Axelar chain)

$AXL Holders (Osmosis Chain)

$AXL Holders (Axelar Chain)

$AXL Holding Time Distribution (Both Chains)

AXL use cases

Holders in a glance

As expected, the number of transactions related to the AXL token every year on its own network has been several times higher than that of the Osmosis network. By looking carefully at the AXL FLOW chart, it is clear that the share of the AXELAR network has gradually increased.

On November 24, the average of these transactions has reached 12K with a tremendous jump on the AXL network, while this amount was 2.5k for the Osmosis network.

**Observations **

• $AXL tot Transfer amount : Osmosis 6.6M Axelar 22.2M
• $AXL avg Transfer amount : Osmosis 1k Axelar 1.3k
• $AXL MedianTransfer amount : Osmosis 15.93 Axelar 9.78
• $AXL tot Transfer txns: Osmosis 6.2k Axelar 18.5k
• $AXL tot #senders: Osmosis 2.7k Axelar 4.2k
• $AXL tot #Receivers : Osmosis 2.9k Axelar 7.1k

Observations

• Investigations show that about 80 percent of the transactions related to AXL transfers were about sending this token inside the Axelar network. The share of Bridge out and Bridge in was 8 and 12 percent, respectively.

• Also, about 41 percent of the transactions related to AXL transfers in Osmosis were about sending this token outside the network. The share related to Bridge In and transfer throughout Osmosis network was 37 and 22 percent, respectively.

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Observations

• Currently, in the Osmosis network, there are 2490 AXL token holders, who together keep 3.95 million tokens in their wallets. The average holding token for each holder is 1.3k. Meidan of this number is equal to 2.5 and the max is equal to 1.09 million.

• the average holding period for wallets buying $AXL in the Osmosis Network is 12.5 days

• At the beginning of the chart, more than 95% of the holders held less than 10 tokens, and with the passage of time, the 100-10 and 100-1000 groups attracted more people. Currently, 62% of holders hold less than 10 tokens, 18.5% hold 100-10 tokens, and 13% hold 100-1000 tokens.

Observations

• Currently, in the Axelar network, there are 5920AXL token holders, who together keep 406Mmillion tokens in their wallets. The average holding token for each holder is 65k. Meidan of this number is equal to 0.05 and the max is equal to 170 million.

• the average holding period for wallets buying $AXL in the Axelar Network is 8.5days

• Currently, 72.8% of holders hold less than 10 tokens, 12% hold 100-10 tokens, and 11% hold 100-1000 tokens.

Observations

• 43% of AXL buyers on the Osmosis network keep it in their bags for up to a month. 26.6% of users keep tokens in their wallets for less than a day and 18.5% for less than a week.
• 44% of AXL buyers on the Axelar network keep it in their bags for up to a day. 38% of users keep tokens in their wallets for less than a month and 12% for less than a week.

Findings

• Among the people who bought AXL token in the Osmosis network, most of them (39.5 percent to be exact) have sent the tokens inside the network. swap out and bridge out are ranked badly in terms of the volume of transactions. But in terms of the number of users and the number of transactions, nearly 40% was related to Bridge out, and swap out is the next with about 30%.