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🚀 ARB Skyrockets 10% After PayPal Brings PYUSD to Arbitrum Network

🚀 ARB Skyrockets 10% After PayPal Brings PYUSD to Arbitrum Network

Author:
Beincrypto
Published:
2025-07-16 11:26:35
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PayPal just lit a rocket under Arbitrum's native token—sending ARB prices surging double-digits overnight. The payments giant's stablecoin expansion proves Layer 2 isn't just for degens anymore.

Institutional Money Meets Meme Chain

When PYUSD landed on Arbitrum, traders piled in like it was a free NFT drop. The 10% price spike tells you everything—Wall Street's favorite crypto gateway just validated Ethereum's scaling darling.

Stablecoins: The Ultimate On-Ramp

Forget boring old bank transfers. PayPal's move turns Arbitrum into a fiat-free trading hub overnight. Suddenly that 'useless governance token' looks mighty useful for bridging real dollars into DeFi.

Of course, the suits will take credit—but we all know retail traders front-ran this news weeks ago. Another win for the little guys (who definitely didn't sell the top).

PayPal’s Arbitrum Integration Fuels 10% Surge for ARB Price

As of this writing, ARB has been trading for $0.4395, up by 10.37% in the last 24 hours. CoinGecko data shows it is the third biggest gainer among the crypto top 60, after Pump.fun (PUMP) and Pudgy Penguins (PENGU).

Arbitrum (ARB) Price Performance

Arbitrum (ARB) Price Performance. Source: BeInCrypto

PENGU draws HYPE from Tron founder Justin Sun’s recent foray into the Pudgy Penguins huddle. Meanwhile, PUMP price is buoyed by Pump.fun’s buyback mechanism, which reduces the circulating supply.

However, tailwinds for the Arbitrum price came after PayPal announced the expansion of PYUSD to the Arbitrum network.

INTEL: Paypal Plans to Expand PYUSD Stablecoin to Arbitrum Chain

— Solid Intel

📡

(@solidintel_x) July 16, 2025

While PayPal supports PYUSD, Paxos issues the US dollar-denominated stablecoin on the Ethereum and Solana networks. With the latest development, however, Arbitrum joins the list, effectively becoming a PYUSD-supported blockchain.

PayPal initially launched PYUSD on Ethereum in August 2023, with the network’s protocol-level activities attracting projects.

6/ Why ETH? Lee points to Ethereum’s dominance in stablecoins, tokenized assets and DeFi. He even called stablecoins the “ChatGPT of crypto” because of their viral product-market fit.

— Eric Conner (@econoar) June 30, 2025

How Users Benefit From PayPal Arbitrum Synergy

Meanwhile, the Arbitrum integration comes almost a year after PayPal expanded PYUSD to the solana blockchain. The move enhanced its usability in financial applications. As BeInCrypto reported,Solana’s high-speed and low-cost transactions influenced PayPal’s decision to integrate.

In hindsight, PayPal’s integration of Solana saw its market capitalization surge toward $1 billion in record time, growing 45% in a month. While the stablecoin saw steady growth during its first 10 months, its adoption soared after the expansion to Solana in May 2024.

The same could happen on Arbitrum, the largest Ethereum L2 network on TVS (total value secured) metrics. Arbitrum’s status as an Ethereum scaling solution WOULD see PYUSD users on its blockchain enjoy reduced transaction costs and congestion, leveraging Arbitrum’s optimistic rollup technology.

Layer 2 Networks on Ethereum ranked on TVS metrics

Layer 2 Networks on Ethereum are ranked on TVS metrics. Source: L2Beat

Notwithstanding, there remains skepticism about sustainability, given the crypto industry’s history with high-yield stablecoins like Terra’s failed algorithmic UST stablecoin. 

This explains the stagnating PYUSD market cap, down nearly 17% from its June 10 high of $1.01 billion.

PYUSD Market Cap

PYUSD Market Cap. Source: CoinGecko

However, users must note that PYUSD, unlike UST, is backed by the dollar. This means each PYUSD token issued is supported by an equivalent dollar in reserve.

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