Altcoin
Arbitrum to phase out bridged USDC with latest revamp
Arbitrum plans to phase out bridged USDC while launching the native USDC. This move could reshape the platform’s stablecoin market cap and trading dynamics.
- Arbitrum and Circle to launch native USDC on the platform on June 8.
- ARB price increased by almost 8% in the last 24 hours.
Arbitrum [ARB] recently made an intriguing revelation regarding the future of one of its bridged stablecoins. They have declared a gradual phasing out of this stablecoin on their network.
The news coincides with the announcement of the official launch date for the native version of the stablecoin on the Arbitrum platform.
Native USDC on Arbitrum
On June 1, Arbitrum and Circle made an exciting joint announcement about the upcoming native launch of USDC on the Arbitrum network. According to the official release, the highly anticipated native version of USDC was scheduled to go live on June 8.
This launch would gradually replace the existing bridged version of USDC from Ethereum, and the bridged version would also undergo a renaming process.
Plans have been implemented to facilitate the gradual shift of liquidity from the bridged USDC to the native USDC over time.
Notably, the announcement clarified that there would be no immediate changes to the functionality of the Arbitrum Bridge, which would continue to operate normally for bridging USDC to and from Ethereum.
Furthermore, Circle expressed its intention to introduce the Cross-Chain Transfer Protocol (CCTP) to Arbitrum following the successful launch of the native USDC.
State of stablecoin market cap on Arbitrum
Arbitrum has witnessed notable growth in its stablecoin market capitalization since its inception, as reported by DefiLlama. This metric calculates the total value of stablecoins present on the network.
As of this writing, the network’s stablecoin market capitalization stood at $1.82 billion. Looking at the chart, it was evident that there was a decline from the peak of over $2 billion in April.
Source: DefiLlama
Additionally, the platform has been observing a healthy volume of flows, as depicted by the DefiLlama chart. On June 1, there was an outflow of $62 million and an inflow of $38.4 million.
As of this writing, the inflow amounted to $19.5 million, while the outflow was $7.4 million.
Furthermore, Arbitrum has attracted a significant number of active users. The current recorded figure indicated that the platform had over 200,000 active users, demonstrating a strong user base and engagement.
TVL and price trend
At the time of writing, Arbitrum’s Total Value Locked (TVL) stood at $2.32 billion, as reported by DefiLlama. The TVL chart revealed a current downtrend, although it experienced a modest gain of less than 1% up to this point.
Source: TradingView
Interestingly, the price of ARB, the native token of Arbitrum, responded differently to the latest developments. It was trading at approximately $1.23 as of this writing, exhibiting an impressive daily gain of nearly 8%.
How much are 1,10,100 ARBs worth today
This positive price movement has caused the trend to shift slightly toward bullish territory, as evidenced by the Relative Strength Index (RSI).
The introduction of a native stablecoin like USDC on the Arbitrum platform has the potential to impact various metrics positively. While the specific outcome is yet to unfold, several aspects could experience favorable reactions.
