Ripple's XRP Ledger has initiated a new collaboration with Axelar, a programmable blockchain interoperability platform, resulting in a surge in AXL price on Wednesday.

The partnership entails Ripple utilizing Axelar as the exclusive bridge for its XRPL EVM sidechain. CoinMarketCap data reveals that AXL experienced a notable surge from below the key resistance level at $0.76 amidst reactions to US CPI data in the broader cryptocurrency market.

The token's price soared to highs of $0.81, marking a 6% increase at the time of writing.

The XRPL EVM Sidechain

Ripple developers unveiled the collaboration with Axelar for the Ethereum Virtual Machine (EVM)-compatible XRPL EVM Sidechain at the XRPL Apex 2024 event. This initiative aims to enhance interoperability and unlock new opportunities within decentralized finance (DeFi) and real-world assets (RWAs) sectors.

The XRPL EVM Sidechain will leverage Axelar to facilitate seamless conversion of XRP into wrapped XRP (eXRP), which serves as the native asset and covers gas fees on the sidechain.

According to Ripple's blog post, "The XRPL EVM sidechain is set to launch with Axelar as the exclusive bridge to source the native gas token of the sidechain (eXRP) from the XRPL."

Ferran Prat, CEO of Peersyst Technology, a collaborator on XRPL, expressed confidence in Axelar's capability, stating, "Axelar is a battle-tested, production-ready and fully compatible bridge to bring wrapped XRP (eXRP) as a native currency to the XRPL EVM sidechain."

Ripple's Strategic Moves

The recent collaboration with Axelar adds to a series of strategic moves by Ripple in recent days. Notably, the company confirmed plans for a dollar-pegged stablecoin and announced a groundbreaking partnership with the central bank of Georgia. Additionally, Ripple unveiled a substantial ecosystem fund for blockchain innovation in Japan and Korea.

Despite these developments, XRP's market performance has remained relatively subdued. However, analysts remain optimistic that regulatory clarity could potentially catalyze a turnaround for the top 10 cryptocurrency by market cap.

At present, XRP is trading at $0.49, reflecting the market's response to recent developments and partnerships within the Ripple ecosystem.