Arbitrum (ARB) recently unveiled an exciting revelation about the future of one of its bridged stablecoins, marking a significant turning point for the network. The announcement coincided with the highly anticipated launch date confirmation for the native version of the stablecoin on the Arbitrum platform.
On June 1, Arbitrum and Circle jointly announced the upcoming native launch of USDC on the Arbitrum network, generating a wave of anticipation among users. The official release revealed that the native version of USDC would officially go live on June 8, gradually replacing the existing bridged version on Ethereum. In tandem with this transition, the bridged USDC will undergo a renaming process.
To ensure a seamless shift, plans have been set in motion to facilitate the gradual migration of liquidity from the bridged USDC to the native USDC over time. It’s worth noting that the functionality of the Arbitrum Bridge will remain unchanged for the foreseeable future, ensuring smooth operations for bridging USDC between Ethereum and Arbitrum.
In a promising move, Circle intends to introduce the Cross-Chain Transfer Protocol (CCTP) to Arbitrum once the native USDC launch proves successful. This integration would further enhance the interoperability and convenience of the platform.
Arbitrum’s stablecoin market capitalization has experienced noteworthy growth since its inception, as reported by DefiLlama. Presently, the network’s stablecoin market capitalization stands at $1.82 billion, although a slight decline from the peak of over $2 billion witnessed in April.
Moreover, the platform has been witnessing a healthy volume of flows, as depicted by the DefiLlama chart. On June 1, an outflow of $62 million was counterbalanced by an inflow of $38.4 million. When writing, the inflow amounted to $19.5 million, while the outflow stood at $7.4 million.
Arbitrum has also garnered a substantial user base, with over 200,000 active users engaging on the platform. This highlights the platform’s strong user engagement and validates its position in the market.
As reported by DefiLlama, Arbitrum’s Total Value Locked (TVL) currently stands at $2.32 billion. While the TVL chart indicates a current downtrend, it has experienced a marginal gain of less than 1% up to this point.
Interestingly, the native token of Arbitrum, ARB, has responded positively to these recent developments. It is currently trading at approximately $1.23, exhibiting an impressive daily gain of nearly 8% and signaling a bullish sentiment, as confirmed by the Relative Strength Index (RSI).
The introduction of a native stablecoin like USDC on the Arbitrum platform holds the potential to impact various metrics positively. While the exact outcomes are yet to unfold, it is plausible that several aspects of the network will experience favorable reactions.