Arbitrum (ARB) is among the biggest gainers today, with holders enjoying double-digit gains in the last 24 hours.
The surge comes after news of the Ethereum Layer-2 (L2) network integrating with PayPal.
PayPal’s Arbitrum Integration Fuels 10% Surge for ARB Price
As of this writing, ARB has been trading for $0.4395, up by 10.37% in the last 24 hours. CoinGecko data shows it is the third biggest gainer among the crypto top 60, after Pump.fun (PUMP) and Pudgy Penguins (PENGU).
PENGU draws hype from Tron founder Justin Sun’s recent foray into the Pudgy Penguins huddle. Meanwhile, PUMP price is buoyed by Pump.fun’s buyback mechanism, which reduces the circulating supply.
However, tailwinds for the Arbitrum price came after PayPal announced the expansion of PYUSD to the Arbitrum network.
While PayPal supports PYUSD, Paxos issues the US dollar-denominated stablecoin on the Ethereum and Solana networks. With the latest development, however, Arbitrum joins the list, effectively becoming a PYUSD-supported blockchain.
PayPal initially launched PYUSD on Ethereum in August 2023, with the network’s protocol-level activities attracting projects.
How Users Benefit From PayPal Arbitrum Synergy
Meanwhile, the Arbitrum integration comes almost a year after PayPal expanded PYUSD to the Solana blockchain. The move enhanced its usability in financial applications. As BeInCrypto reported, Solana’s high-speed and low-cost transactions influenced PayPal’s decision to integrate.
In hindsight, PayPal’s integration of Solana saw its market capitalization surge toward $1 billion in record time, growing 45% in a month. While the stablecoin saw steady growth during its first 10 months, its adoption soared after the expansion to Solana in May 2024.
The same could happen on Arbitrum, the largest Ethereum L2 network on TVS (total value secured) metrics. Arbitrum’s status as an Ethereum scaling solution would see PYUSD users on its blockchain enjoy reduced transaction costs and congestion, leveraging Arbitrum’s optimistic rollup technology.
Notwithstanding, there remains skepticism about sustainability, given the crypto industry’s history with high-yield stablecoins like Terra’s failed algorithmic UST stablecoin.
This explains the stagnating PYUSD market cap, down nearly 17% from its June 10 high of $1.01 billion.
However, users must note that PYUSD, unlike UST, is backed by the dollar. This means each PYUSD token issued is supported by an equivalent dollar in reserve.
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