AXL price plummeted after Circle acquired Interop Labs' team and IP.

AXL price plummeted after Circle acquired Interop Labs' team and IP but completely excluded the AXL Token and the Axelar network itself from the deal, causing the market to re-evaluate expectations of "Token that benefit from infrastructure success."

The agreement brought Axelar 's original core engineering team to Circle to advance the multichain infrastructure with Arc and CCTP. However, because there was no mechanism to tie the transaction value to AXL, investors reacted with selling pressure as soon as the "no Token" clause was clarified.

AXL price dropped because the deal didn't create direct value for the Token.

AXL price dropped sharply because Circle 's deal only acquired Interop Labs' team and intellectual property, excluding the AXL Token and the Axelar network. Without a mechanism for value to flow back to tokenholders, traders tend to close/exit their positions.

During Tuesday's trading session, AXL briefly dropped by approximately 13%, according to market data cited in the original article. The reason for this market shift wasn't the quality of the technology, but rather the fact that the Token didn't receive any economic benefits from the transaction: no buybacks, no revenue Chia , and no transfer of asset ownership to the DAO/tokenholders.

From a valuation perspective, this is a reminder that “product success” and “ Token price” are not synonymous. If the Token doesn’t have a mandatory Vai in fees, security, revenue, or governance tied to the cash-flowing asset, then good news about the business/infrastructure can still be bad news for the Token.

Amidst volatility driven by M&A news and multichain infrastructure expectations, traders often monitor additional Derivative signals such as funding, open interest (OI), and liquidation clusters to assess Longing/ Short pressure; you can refer to the tool and trader privileges on BingX to understand how the market reacts when "team value" diverges from " Token value".

Circle is targeting personnel and IP to accelerate Arc and CCTP.

Circle acquired the team and IP of Interop Labs to expand its capacity to build multichain infrastructure, supporting its stablecoin and payments ambitions.

The deal highlighted the need for engineers and "interop" technology, rather than the need to own Token.

According to the announcement quoted in the original post, Circle brought the @interop_labs team (the original developers of Axelar) into Circle to “accelerate the next chapter of multichain infrastructure” alongside @Arc and CCTP. The post includes the following link: https://pic.twitter.com/dDmW5ZIACa .

The key message lies in the transaction structure: Circle gains deployment capabilities and IP ownership to support its enterprise product, while the Token market lacks a "pegged base" to expect cash/value to flow back to AXL. This is a case of "buying production capacity" rather than "buying network ownership."

The Axelar network is still operational, but the development focus has shifted to Common Prefix.

The Axelar network was not acquired, and operations/development are expected to continue with a larger Vai for Common Prefix.

However, the market may reassess the implementation risk as the core team shifts its preference to Circle 's product.

The original content stated: Interop Labs is leaving the ecosystem as the core development team/unit, while Common Prefix (a long-time contributor) will take on a larger Vai in maintaining and developing Axelar.

Technically, Axelar remains the network that enables blockchains to communicate and transfer assets between them.

The key difference investors need to make is that "network continuity" and "growth momentum" may no longer be in sync as they once were.

If R&D resources, enterprise partnerships, or product roadmap are more focused on Arc/CCTP at Circle, Axelar will need to demonstrate that the ecosystem still has the capacity to attract developers, integrators, and users without relying on Interop Labs.

This deal sets a precedent: M&A could turn Token into "side losses".

This deal shows that M&A in crypto can strengthen teams and infrastructure, but Token don't automatically benefit.

Without a mechanism to accumulate value for the Token, the Token price could react negatively even if the technology is validated.

The original article emphasizes that buyers may be interested in the team, IP, and enterprise-oriented infrastructure, but not in Token tied to the open network.

At that time, tokenholders had no formal link to the "economics" of the transaction: no buying pressure, no revenue Chia , and no governance rights over the assets they had just purchased.

A practical takeaway is: when evaluating an infrastructure Token , check its “value accrual path”.

If growth can be packaged into enterprise products/SDKs/services without Token, the market will view Token as a risk of being detached from the most attractive value proposition of the ecosystem.

Frequently Asked Questions

What did Circle purchase from Interop Labs?

Circle has signed an agreement to acquire the team and intellectual property (IP) of Interop Labs, the original and core developer behind Axelar . The deal does not include the AXL Token or the Axelar network itself.

Why did AXL drop sharply immediately after this news?

AXL price dropped because the "no Token" clause led investors to believe the transaction did not create direct value for tokenholders: no Token buybacks, no revenue Chia , and no economic rights to the assets recently acquired by Circle .

Is the Axelar network affected or down?

The original content did not indicate that the Axelar network was acquired or ceased operations. However, the market may monitor the implementation risks and the ability to maintain development speed as the Interop Labs team moves to Circle.

What role did Common Prefix Vai after the deal?

Common Prefix, a long-time contributor to the ecosystem, is expected to take on a larger Vai in maintaining and developing Axelar after the Interop Labs team joins Circle.

What is the biggest lesson for infrastructure Token investors?

M&A can validate technology and upgrade infrastructure, but Token only benefit if their structure is tied to the system's cash flow, fees, security, or economic rights. Otherwise, good news about the team/IP can still cause the Token price to fall.