The price of Arbitrum’s native token, ARB, surged 10.37% to $0.4395 following PayPal’s announcement that it will extend support for its PYUSD stablecoin to the Ethereum Layer-2 network. This significant gain positioned ARB as the third top gainer among the top 60 cryptocurrencies by market capitalization.
PayPal’s integration of PYUSD onto Arbitrum leverages the Layer-2 network’s capabilities, aiming to enhance transaction efficiency and improve user experience. Arbitrum, the largest Ethereum Layer-2 network by total value secured (TVS), utilizes optimistic rollup technology to enable scalable and cost-effective transactions.
PYUSD is a fully dollar-backed stablecoin, distinct from algorithmic models, ensuring redeemability and price stability. The expansion of PYUSD onto Arbitrum is seen as a move that could accelerate broader decentralized finance (DeFi) adoption.
Market analysts suggest this integration could increase demand for ARB tokens by driving more activity onto the Arbitrum network, highlighting the growing importance of Layer-2 solutions for efficient crypto transactions.