• Arbitrum Improvement Proposal AIP-2 has been officially passed by the community to simplify development of smart contract wallets. 
  • AIP-2 implementation would allow users to pay gas fees using any ERC-20 token, and outside entities could offer subsidized gas fees to users. 
  • Arbitrum’s update is likely to catalyze ARB price recovery in the short term.

Arbitrum, a suite of Ethereum scaling solutions, has officially announced that AIP-2 was passed by the community. The protocol attempts to scale the Ethereum blockchain, and with its new update it addresses user concerns surrounding smart contract wallet usage and gas fees.

Also read: Arbitrum unlocks Layer 3 chains as Ethereum Layer 2 wars intensify

Arbitrum officially passes AIP-2

Arbitrum has officially launched an Arbitrum Improvement Proposal (AIP-2) tackling several user experience level challenges for market participants. Three key concerns of users are wallet recovery, payment of gas fees and bundling transactions together.

AIP-2 tackles these challenges and provides the desired benefit to users through social recovery, payment of gas fees through any ERC-20 token (not just Ether) and more control over batched transactions through session keys. 

The Total Value of Assets Locked (TVL) in the Arbitrum network surpassed $2.747 billion, according to DeFi intelligence tracker DeFiLlama. During previous launches and releases from Arbitrum developers Offchain Labs, there has been a notable increase in the TVL and ARB price. 

ARB/USDT one-day price chart on Binance

ARB/USDT one-day price chart on Binance 

If history repeats, it is typical for Arbitrum price to climb in response to an AIP-2 approval by the community. At the time of writing, ARB price trades at $1.266 against USDT on Binance. The Ethereum scaling token is up 11.46% between June 21 and early on Friday. It is likely that ARB price rallies in the short term, yielding further gains for holders.


Like this article? Help us with some feedback by answering this survey:



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai Price Prediction: FET must hold above $1.70 for strength

Fetch.ai price has dropped nearly 45% since late March as broader markets started bleeding. FET bulls must defend $1.70 if they want to keep the upward thrust alive, signaling strength on the AI coin. A break and close below $1.59 would mean a lower low, invalidating the bullish reversal thesis.

More Fetch.ai News

OKX executives depart from exchange while its XLayer Chain goes live

OKX executives depart from exchange while its XLayer Chain goes live

Two senior executives at crypto exchange OKX, Tim Byun and Wei Lan, have left the company after years of heading key roles, according to a CoinDesk source. However, the company is making expansion moves through the launch of its own Layer 2 (L2) chain.

More Cryptocurrencies News

Traders eyeing long positions could have their rally soon as funding rates flip negative

Traders eyeing long positions could have their rally soon as funding rates flip negative

Bitcoin (BTC) price remains on a load-shedding exercise, a sentiment that has spilled over to the broader market. Nevertheless, the bleed seen across the cryptocurrency market could end soon amid possible shifting market sentiment.

More Cryptocurrencies News

Prisma Finance hacker could be uncovered after investigations by on-chain analyst

Prisma Finance hacker could be uncovered after investigations by on-chain analyst

On March 28, DeFi protocol Prisma Finance suffered an attack on one of its smart contracts, resulting in a loss of 3257 ETH worth $11.1 million. Prisma Finance immediately halted its protocol after the hack, ordering users to revoke access to the smart contract.

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP