Based on the texture you did, it makes it seem as if the axe has been used for a long time, but the red is too vibrant, as if it was brand new. The large patch of exposed metal where the handle goes through, seems to be out of place. There could be some light scratches, but not over exaggerated like you have. Also add some scratches on the blade edges, as that's where they'd occur naturally over time and use of the axe.
For modelling, add some chamfered edges to the blade, looks to perfect, and will make the model so much better once you use lightning in an engine.
i like the metal part very much. Your smoothing groups make it look like it's rounded...if you re not gonna bake a normal map (i assume you havent made a hi poly version of this) then, chamfering the edges like djgardner said is the way to go. the wood and handle need more weathering around the two edges of the handle, and also you should add some dirty variations to the wrappings, some more white, some more dark, like in the places where the guy's hands are grabbing it. also, having scratched metal near the edge makes sense, but not in the middle. you can add some small scratches there, but not big grinding like that. keep it up!
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For modelling, add some chamfered edges to the blade, looks to perfect, and will make the model so much better once you use lightning in an engine.