Standard Chartered has projected that the price of Arbitrum's ARB token could soar to $10 by the end of 2030, marking an increase of approximately 70 times its current value of around 14 cents. This optimistic forecast is driven by revenue generated from networks like Robinhood Chain.
The bank believes tokenization will position Arbitrum as a preferred network for traditional finance, despite current limitations for ARB holders.
On Tuesday, Standard Chartered initiated coverage of Arbitrum’s ARB token, predicting a rise to $10 by 2030, significantly higher than its present value of about 14 cents. The bank attributes part of this anticipated growth to the revenue Arbitrum earns from facilitating companies like Robinhood in developing their networks.
In the past 24 hours, ARB has seen nearly a 7% increase, even amid a downturn in the broader cryptocurrency market.
Robinhood Chain has reportedly boosted Arbitrum's estimated monthly revenue to about $5 million, a figure that has surged more than fivefold since the chain's launch in July, according to Geoffrey Kendrick, who leads digital assets research at Standard Chartered.
Kendrick noted, "The recent Robinhood chain launch has demonstrated the potential for Arbitrum to become the number one choice for traditional finance when bringing assets on-chain." However, he highlighted a critical caveat: ARB holders currently do not have a direct claim to the revenues generated, which he identified as a risk factor. Earlier reports indicated that Robinhood Chain allocates 10% of its net protocol revenue to the Arbitrum ecosystem, with 8% directed to the DAO treasury and 2% to a developer fund, leaving nothing for ARB token holders.
Moreover, the early adoption of Robinhood Chain has been fueled largely by users of memecoin platforms and trading applications, which diverges from the traditional financial users Kendrick envisions for the long term. In July, Robinhood Chain paid approximately $360,000 in licensing fees, which represented 35% of Arbitrum DAO's income for that month. By September 1, the chain had generated $3.75 million in user fees, contributing around $370,000 to Arbitrum in a single day.
Kendrick anticipates that by the end of 2028, $4 trillion worth of traditional assets will be tokenized, and he believes Arbitrum will capture an increasing share of the infrastructure required for this transition. His price forecast for ARB includes $0.50 by the end of this year, $1.50 in 2027, $3.50 in 2028, $6.50 in 2029, and ultimately $10 in 2030.
However, the bank also cautioned about slower tokenization rates and competition from other blockchains as potential risks. Currently, Robinhood is subsidizing gas fees for users trading on its official wallet, a 90-day initiative set to expire at the end of September. Additionally, another 92.6 million ARB tokens are scheduled to unlock on September 16.