Arbitrum Surges as Stablecoins Shift from Ethereum
In the past week,arbitrum,a layer-2 network,attracted $381 million in stablecoin inflows. Simultaneously occurring, Ethereum saw $374 million in outflows. This trend suggests users are moving to faster, cheaper alternatives.
Tron also gained, with $102 million in stablecoin inflows. It’s now the leader in USDT supply, especially in Asia. However, Solana lost $239 million in stablecoins, partly due to the memecoin market slowdown.
Layer-2 networks like Arbitrum help scale Ethereum by reducing fees. But this shift worries some ETH holders. They fear too much value is moving away from Ethereum’s base layer.
Arbitrum benefits from Ethereum’s security but captures most transaction fees. This reduces Ethereum’s gas fee revenue, affecting its deflationary model.
However,the recent Pectra Upgrade is changing Ethereum’s narrative. Artemiy Parshakov, VP at P2P.org, believes Ethereum should focus on long-term goals.He says cheaper transactions and efficiency are key for a sustainable ecosystem, where Arbitrum plays a vital role.
These changes show the evolving crypto landscape. Users seek faster, cheaper options, but Ethereum aims for long-term growth.
