Arbitration has successfully implemented the said update “Atlas,” which introduces the use of blobs.
In the context of the Atlas update, Offchain Labs has added support for the Dencun update in the Arbitrum ecosystem.
The main goal of the Atlas update is to reduce transaction fees on Ethereum Layer 2 by leveraging blob transaction integration. Let’s see all the details below.
Dencun: A turning point in the Arbitrum ecosystem with the Atlas update
As expected, Offchain Labs, the main developer of Arbitrum, has deployed the update called Dencun within the Arbitrum ecosystem via the ArbOS 20 update, known as “Atlas”.
The main goal of the Atlas update on Arbitrum is to reduce transaction fees on Ethereum Layer 2 by integrating the blob transaction feature, which became available with the recent launch of Dencun.
This implementation has been approved by the Arbitrum DAO board.
The Dencun update 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, moving away from the traditional “call data” approach and paving the way for significant reductions in transaction fees for Layer 2 networks, including Arbitrum.
In order to use 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, who implemented BLOB transactions shortly after Dencun have already significantly reduced average transaction costs.
As for Arbitrum, Offchain Labs predicts a reduction in the network’s minimum base fee from 0.1 gwei to 0.01 gwei, which represents a tenfold drop.
With an average Arbitrum transaction fee that could potentially decrease $0.5 to about $0.05 after the Atlas update.
Optimizing transactions on Arbitrum and growing the community
Steven GoudfederCEO and co-founder of Offchain Labs, commented:
“We are pleased to see that Arbitrum DAO has voted in favor of the upgrade to ArbOS Atlas, which will bring significant benefits to the community in terms of improving transaction prices.”
Offchain Labs has stated that several service providers, including Altlayer, Caldera, Conduit and Gelato, focused on Arbitrum, will assist with the transition for individual Orbit chains using the Arbitrum software stack.
Additionally, Offchain Labs has clarified that the ArbOS Atlas update can be deployed by Orbit chains without requiring approval from the Arbitrum DAO governance process.
Arbitrum is the most deployed Layer 2 network on Ethereum, based on the number of active wallets, and also has the highest total value among Layer 2 solutions, at nearly $3.5 billion, supporting popular decentralized apps like Uniswap, GMX and Aave.
Arbitrum: record price, technical analysis and future scenarios
Arbitrum’s price is approaching its all-time high $2.42with an expected rally of 11% due to investor support and favorable market conditions.
ARB holders appear intent on holding the sale until it crosses the key $2.42 level, with approximately 64 million ARB worth more than $140 million, which would become profitable once reached.
Technical analysis shows bullish signals of the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), both of which indicate potential growth.
The MACD is showing an active bullish crossover, while the RSI is in the bullish zone above the neutral line.
Despite the bullish potential, Arbitrum’s price has a sideways trend in recent days, with the possibility of a decline if investors decide to sell.
Solid support is found at $2.00, but loss of this level could negate the bullish outlook and lead to losses for large volume of ARB, with price potentially testing the next support. $1.68.