Users of Arbitrum Orbitchains, layer 3 solutions for Ethereum built on the platform’s tech stacks, can now pay gas fees using USDC. The move comes even as ARB, Ethereum’s native layer 2 token, continues to post lower lows, pushing losses to nearly 80% from January 2024 highs.
Arbitrum Orbit Chains Supports USDC for Gas Fee Payments
IN press releaseThe decision to integrate USDC bridge is aimed at reducing gas fees and attracting more developers. As of August 8, USDC is one of the largest stablecoins by market capitalization. Data from CoinMarketCap shows that Circle, a stablecoin issuer, has issued more than $34.5 billion in tokens, mostly on Ethereum and its Layer-2.
It should be noted that USDC is also supported in other ecosystems, including Solana and BNB Chain. To date, over $1.6 billion has been invested connected to Arbitrum.
Arbitrum said that by allowing users to pay for gas using USDC, they will be spared the pain of constant volatility typical of ETH. Depending on demand, gas fees tend to fluctuate, increasing several times when the main network experiences congestion.
This volatility tends to significantly impact the user experience, which is why some users choose alternative platforms such as Solana or Avalanche, where gas fees are relatively low.
Since USDC is pegged to the greenback, it is stable. Accordingly, regardless of the decentralized application, they use On Arbitrum orbital chains, users can predict gas fees, making it easier to budget and, more importantly, manage finances.
Promoting implementation, reducing ARB by 80% in 8 months
In a press release, Arbitrum added that this integration will free users of the Orbit Chain network from the need to hold multiple tokens, further improving the user experience.
Circle also announced a grant program for projects that will be built on Arbitrum, which could spur USDC adoption on the orbital chain.
Despite the integration, ARB, Arbitrum’s native token, remains under heavy selling pressure. As of August 8, the downtrend continues, with ARB down nearly 80% from its January 2024 highs.
Although prices are consolidating, as seen on the daily chart, bulls need to break higher, breaking $0.60. However, a clean break above 40.80 or the July highs could trigger demand. This surge could revive demand in the medium to long term.
