- 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.
Arbitrum Improvement Proposal #2 has officially passed
— Arbitrum (,) (@arbitrum) July 20, 2023
AIP-2 improves support for Account Abstraction, making development around Smart Contract Wallets easier than ever.
The frontier of improving web3's UX starts here, so let’s explore some use cases pic.twitter.com/GfBd4rmN0Y
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
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.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.