Users of Arbitrum’s Orbital Chain, a layer-3 solution for Ethereum built on the platform’s technology 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, bringing losses to nearly 80% since January 2024 highs.
Arbitrum Orbit Chains Supports USDC in Paying Gas Fees
In a Press releaseThe decision to bridge USDC is aimed at reducing gas fees and attracting more developers. As of August 8, USDC is one of the top stablecoins by market cap. CoinMarketCap data show that Circle, the stablecoin issuer, has minted over $34.5 billion worth of tokens, mostly on Ethereum and its Layer 2s.
It should be noted that USDC is also supported on other ecosystems, including Solana and the BNB Chain. Currently, over $1.6 billion worth of USDC has been transferred to Arbitrum.
By allowing users to pay gas fees using USDC, Arbitrum said they would be saved from the pain of ETH’s long-lasting volatility. Depending on demand, gas fees tend to fluctuate, increasing several-fold when there is congestion on the mainnet.
This volatility tends to significantly impact the user experience. As such, some users opt for alternative platforms like Solana or Avalanchewhere gas fees are relatively low.
Since USDC is pegged to the dollar, it is stable. So, regardless of the decentralized application used on Arbitrum’s orbital chains, users can predict gas fees, making it easier to budget and, more importantly, manage finances.
Driving adoption, ARB dropped 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 has also announced a grant program for projects looking to build on Arbitrum. This could spur the adoption of USDC on the Orbital chain.
Despite the integration, Arbitrum’s native token ARB remains under intense selling pressure. As of August 8, the bearish trend continues, with ARB down nearly 80% from its January 2024 highs.
Although prices have consolidated, as evident on the daily chart, bulls need to push higher to $0.60. However, a clear break above $40.80, or the July highs, could stimulate demand. This rise could revive demand in the medium to long term.