It could be that your blade has been over-heated in the tempering stage and is too crystalline in structure.
If this is true, it needs "normalizing".
Warning... This process should not be done to a good blade! Only steel that needs to change its 'crystalline structure' or state. Although this procedure would benefit most steel tools, some extremely hardened steel items could be damaged - or made less hard.
Also, be sure there is no paint or other chemicals or substance on the axe, as this may cause toxic odors or even fire!
To normalize steel (axes. hatchets, knives, etc.), preheat your oven to 400 degrees. Place the axe head on the top rack for about an hour.
(This approximate temperature is required to reach the 'straw' color in steel. -=- The top rack is used in your oven because the bottom element is the one that heats, turns off, then heats again. The top rack has a more constant temperature.)
After an hour, take it out of the oven and air cool it. (to room temperature.)
Use long handle pliers, tongs, or other tool to remove the axe and place it where no one will be burned by it, on a fire-proof surface that will not burn.
After it cools, prepare your handle (haft) and place the axe back into the oven, this time at 200 degrees for 30 minutes. While it's still hot, place it on the wooden handle and hit the handle (top) with a 2 pound deadblow hammer to seat it.
Read the tutorial on this procedure
HERE - Part 1.
Code:
http://bladeforums.com/forums/showthread.php?t=531185
And
HERE - Part 2.
Code:
http://bladeforums.com/forums/showthread.php?t=531187
Hope this helps the condition of your axe.
Ron