Arbitrum has recently launched Converge, a new blockchain designed to serve as a settlement layer for tokenized real-world assets and on-chain finance. This initiative, created by Ethena Labs and Securitize, aims to bring billions of dollars in stable assets into decentralized finance (DeFi). Converge was specifically developed to support the tokenization of real-world assets and related financial applications. The network will use Celestia’s modular data availability layer to ensure faster and more reliable data processing. Two key stablecoins, USDe and USDtb, will serve as gas tokens, providing stability in transaction fees.
Initially, Converge will operate with block times of 100ms, with upgrades planned to bring block times down to just 50ms. Validators will secure the network using sENA, and the platform will host major decentralized finance applications such as DApps like Ethereal DEX. The planned Stylus upgrade will enable developers to write smart contracts using Solidity, Rust, C, and C++, allowing for more efficient and scalable application development. With assets worth $5 billion from Ethena Labs and $2 billion managed by Securitize moving onto Converge, the liquidity on the platform is expected to see a significant boost.
In the realm of Ethereum Layer 2 solutions, competition is growing as these solutions are seeing increased adoption. For example, Base achieved significantly higher User Operations Per Second (UOPS) compared to Ethereum Mainnet. Arbitrum One, despite a 35.9% decline in 30-day usage, remains a strong contender in the space. Rollup activity on the network saw a surge towards the end of 2024, indicating growing trust in Layer 2 solutions. The launch of Converge is expected to drive more interest and engagement in the network, potentially impacting the price of ARB positively in the near future.
Recent reports indicate that the U.S.-based trading platform Robinhood has added Arbitrum (ARB) to its list of tradable cryptocurrencies, leading to a 14% price rally for the Ethereum layer-2 network. As of now, the Arbitrum price is trading at $0.2808, with a slight positive change in the past 24 hours. The trading volume has also increased, reaching approximately $115.38 million. Market perception suggests that the launch of Converge could drive more interest and engagement, potentially impacting the price of ARB in a positive manner. Another major development to watch out for is the Ethereum Pectra upgrade, set to go live on the mainnet by May 7.
In conclusion, the launch of Converge by Arbitrum is a significant development in the blockchain space, aiming to bring billions of dollars in stable assets into DeFi. The platform’s focus on tokenizing real-world assets and providing a reliable settlement layer for on-chain finance applications demonstrates its potential to revolutionize the decentralized finance landscape. With strong competition in the Ethereum Layer 2 solutions space, Arbitrum’s infrastructure continues to be a key player, with the potential for further growth and adoption in the future. Additionally, the positive price rally following the listing of ARB on Robinhood and the upcoming Ethereum Pectra upgrade add to the excitement surrounding Arbitrum and its ecosystem.
