Standard Chartered predicts Arbitrum's ARB to rise 70-fold to $10, citing Robinhood Chain revenue
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Summary
Standard Chartered forecasted that Arbitrum’s ARB token could rise from about $0.14 to $10 by the end of 2030, citing revenue growth from networks like Robinhood Chain. The bank attributed Arbitrum’s rising revenue primarily to Robinhood Chain, which has increased the network’s estimated monthly revenue run rate to about $5 million. However, the bank noted that ARB holders currently do not have a direct claim on this revenue, and highlighted slower tokenization and blockchain competition as risks.
Why it matters
According to Standard Chartered, Arbitrum has the potential to become a major blockchain provider for tokenizing traditional financial assets, a market expected to reach $4 trillion by 2028. The growth in revenue from Robinhood Chain supports this outlook, signaling possible long-term value for ARB. However, the source does not elaborate on the broader impact on markets or users beyond these points.
Key context
Robinhood Chain launched in July and has rapidly increased Arbitrum’s revenue, with much early activity driven by memecoin platforms and trading apps rather than traditional asset tokenization. Robinhood Chain contributes 10% of its net protocol revenue to the Arbitrum ecosystem, split between the DAO treasury and a developer fund, with no direct revenue distribution to ARB token holders at present.
Key numbers and entities
Standard Chartered, Arbitrum (ARB token), Robinhood Chain, Geoffrey Kendrick (Standard Chartered’s global head of digital assets research). ARB price forecast: $0.50 by end of 2024, $1.50 in 2027, $3.50 in 2028, $6.50 in 2029, $10 in 2030. Robinhood Chain $5 million monthly revenue run rate as of September. $360,000 licensing fees paid in July, representing 35% of Arbitrum DAO income that month. A 90-day gas fee subsidy on Robinhood ends in late September; 92.6 million ARB tokens unlock on September 16.
What remains unclear
The source does not detail how or whether ARB holders might eventually receive revenue shares from the ecosystem. The precise mechanisms and timeline for Arbitrum’s broader adoption in tokenizing traditional assets remain unspecified, and it is unclear how the expiration of Robinhood’s gas fee subsidy might impact user activity or revenues.