On Tuesday, Axelar’s AXL token experienced a significant decline of up to 13%, as reported by CoinDesk market data. This drop followed the announcement from Circle, a prominent stablecoin provider, regarding its agreement to acquire both the team and proprietary intellectual property of Interop Labs—the primary developer behind the Axelar Network.
We have finalized an agreement to integrate the @interop_labs team – original developers of @axelar, which is recognized for its leading interoperability solutions – into Circle. This move aims to enhance multichain infrastructure through @Arc and CCTP. We are thrilled to welcome new members on board… pic.twitter.com/dDmW5ZIACa
— Circle (@circle) December 15, 2025
Notably, this acquisition does not include the AXL token or the network itself.
The engineers from Interop Labs along with their intellectual property will be transitioning into Circle’s fold. Meanwhile, Common Prefix—a long-standing contributor—is expected to take on a more significant role in overseeing and advancing the Axelar ecosystem.
Axelar operates as a cryptocurrency network aimed at facilitating communication and asset transfers among various blockchains.
The market reacted promptly as traders began selling off AXL upon realizing that this acquisition would not provide any direct benefits for token holders despite affirming the underlying technology’s value in terms of interoperability.
This situation indicates that potential investors might be more interested in acquiring teams and intellectual properties rather than tokens linked with open networks.
In this instance involving Axelar, Circle stands to gain valuable engineering skills and expertise in interoperability that could bolster its ambitions within stablecoins and payment systems; however, AXL holders find themselves disconnected from any economic advantages arising from this transaction.
The token lacks support through buying pressure or revenue sharing opportunities related to these newly acquired assets while also missing out on governance rights over them.
This development raises questions about whether success within protocols automatically translates into increased token values. The emerging conclusion suggests that mergers and acquisitions within crypto may enhance infrastructure capabilities but can also leave tokens vulnerable if they are not integrally connected to such deals—potentially rendering them collateral damage instead.