Users of Arbitrum Orbital Chains, a Layer 3 solution for Ethereum built on the platform’s tech stacks, can now pay gas fees using USDC. The move comes as ARB, Ethereum’s native Layer 2 token, continues to post lower lows, pushing losses to nearly 80% since its January 2024 highs.
Arbitrum’s Orbit Chains Support USDC for Gas Fee Payments
In a press release, the move to integrate bridged USDC is aimed at reducing gas fees and attracting more developers. As of August 8, USDC is one of the leading stablecoins by market cap. Data from CoinMarketCap shows that Circle, the stablecoin issuer, has minted over $34.5 billion of the token, primarily on Ethereum and its layer 2s.
It is worth noting that USDC is also supported in other ecosystems, including Solana and the BNB chain. Currently, over $1.6 billion USDC has been transferred to Arbitrum.
By allowing users to pay gas fees using USDC, Arbitrum said they would be spared the persistent volatility typical of ETH. Depending on demand, gas fees tend to fluctuate, increasing several times during congestion on the mainnet.
This volatility tends to have a significant impact on user experience, which is why some users opt for alternative platforms like Solana or Avalanche, where gas fees are relatively low.
Since USDC is pegged to the dollar, it is stable. Therefore, no matter what decentralized application they are using on Arbitrum’s Orbital Chains, users can predict gas fees, making it easier to budget and, more importantly, manage finances.
Driving adoption, ARB down 80% in 8 months
In the press release, Arbitrum added that this integration will free Orbit Chain users from holding multiple tokens, further improving the user experience.
Circle also announced a grant program for projects that want to build on Arbitrum. This could boost USDC adoption on the Orbital Chain.
Despite the integration, Arbitrum’s native token, ARB, remains under intense selling pressure. As of August 8, the downtrend continues and ARB is down nearly 80% from its January 2024 highs.
Even though prices have consolidated, as shown on the daily chart, bulls need to push higher, to surpass $0.60. However, a clear break above $40.80, the July highs, could revive demand. This push could revive demand in the medium to long term.
