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Arbitrum has successfully implemented the update called “Atlas,” which introduces the use of blobs.
Offchain Labs, in the context of the Atlas update, has integrated support for the Dencun update in the Arbitrum ecosystem.
The main goal of the Atlas update is to reduce transaction costs on Ethereum Layer 2 by leveraging the incorporation of blob transactions. Let’s see all the details below.
Dencun: a turning point in the Arbitrum ecosystem with the Atlas update
As anticipated, Offchain Labs, the main developer of Arbitrum, has implemented the update called Dencun within the Arbitrum ecosystem through the ArbOS 20 update, known as “Atlas”.
The main goal of the Atlas update on Arbitrum is to reduce transaction costs on Ethereum Layer 2 by integrating the blob transaction feature, made available with the recent launch of Dencun.
This implementation has been approved by the governance of Arbitrum DAO.
The Dencun update has introduced a new form of transaction called blob in Layer 2 networks.
These blobs represent a new approach for chains in storing information on Ethereum, diverging from the traditional “call data” approach and paving the way for significant reductions in transaction fees for Layer 2 networks, including Arbitrum.
To adopt BLOBs, layer 2 networks must perform software updates, and Arbitrum is one of the latest networks to do so.
Networks like Optimism, Base, and Starknet, which have implemented BLOB transactions shortly after Dencun, have already seen significant reductions in average transaction fees.
Regarding Arbitrum, Offchain Labs predicts a reduction in the network’s minimum base fee from 0.1 gwei to 0.01 gwei, marking a tenfold decrease.
With an average Arbitrum transaction fee that could potentially drop from $0.5 to about $0.05 after the Atlas update.
Optimization of transactions on Arbitrum and growth of the community
Steven Goldfeder, CEO and co-founder of Offchain Labs, commented as follows:
“We are excited to see that Arbitrum DAO has voted for the upgrade to ArbOS Atlas, which will bring significant benefits to the community in terms of transaction price improvement.”
Offchain Labs has stated that several service providers, including Altlayer, Caldera, Conduit, and Gelato, focused on Arbitrum, will assist in the transition for individual Orbit chains using the Arbitrum software stack.
Furthermore, Offchain Labs has clarified that the ArbOS Atlas update can be implemented by Orbit chains without the need for approval from the Arbitrum DAO governance process.
Arbitrum is the most used Layer 2 network on Ethereum, based on the number of active wallets, and also boasts the highest total value locked among Layer 2 solutions, with almost 3.5 billion dollars, supporting popular decentralized apps like Uniswap, GMX, and Aave.
Arbitrum: record price, technical analysis and future scenarios
The price of Arbitrum is approaching its all-time high of $2.42, with an expected 11% rally driven by investor support and favorable market conditions.
The holders of ARB seem intent on holding sales until it exceeds the key level of $2.42, with about 64 million ARB worth over $140 million that would become profitable once reached.
Technical analysis shows bullish signals from the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), both indicating a potential growth.
The MACD shows an active bullish crossover, while the RSI is in the bullish zone above the neutral line.
Despite the bullish potential, the price of Arbitrum has shown a sideways trend in recent days, with the possibility of a decline if investors decide to sell.
A solid support is found at $2.00, but the loss of this level could invalidate the bullish prospects and lead to losses for a large volume of ARB, with the price potentially testing the next support at $1.68.
