Ethereum News Today: PayPal's PYUSD Expansion Drives 11% ARB Gain

PayPal's decision to expand its stablecoin PYUSD to the Arbitrum network has sparked significant interest in the digital currencies market. This move comes as Bitcoin steadied above $118,000, and altcoins, including Arbitrum’s ARB, turned bullish. ARB soared 10% in its daily chart, driven by the announcement of PayPal's plans to integrate PYUSD with the Arbitrum network.

PayPal initially launched the US dollar-backed PYUSD stablecoin in late 2023 on the Ethereum blockchain. The stablecoin aimed to facilitate smooth crypto transactions within the web3 sector. In mid-2024, PYUSD expanded to the Solana network, and recent developments indicate that the team is working to launch the stablecoin on Stellar (XLM). Now, PayPal plans to launch PYUSD on Arbitrum, an L2 solution known for its speed, efficient transactions, and cost-friendliness.

This collaboration between PayPal and Arbitrum signifies a deeper integration between blockchain technology and traditional finance. PayPal's decision to use Arbitrum is likely driven by the platform's performance and scalability. Arbitrum is one of the most reliable L2 solutions within the Ethereum blockchain, offering faster speeds and lower charges while benefiting from Ethereum’s security. The platform recently launched Trailblazer 2.0 to support DeFi agents, further enhancing its capabilities.

For PayPal, this integration opens the path for more flexible real-time transactions that bypass Ethereum’s lower speed and high gas fees. The payment firm envisions a future where users can interact with PYUSD across decentralized finance ecosystems, NFT marketplaces, and global payment channels with near-zero charges and a single click of a button. This move is expected to position Arbitrum as one of the top players in the blockchain world, potentially driving further adoption and growth in the digital assets sector.

Following the announcement, ARB reflected bullishness, jumping from $0.3982 to $0.4422 on its daily chart, an 11% increase. The native coin exhibited a bullish outlook, hovering at $0.4375, with a 60% increase in daily trading volume suggesting renewed investor interest. ARB appears poised for continued uptrends in the short term, especially with the improved broad market sentiments. Bulls target the key price level at $0.50, which means a nearly 15% increase from ARB’s current market price. Increasing institutional interest may also boost the alt’s long-term performance.