Standard Chartered sees Arbitrum ARB reaching $10 by 2030 on tokenization growth
Bank projects $10 target for ARB token by 2030
Standard Chartered has predicted that Arbitrum, a layer-2 network for Ethereum (a digital currency), could become one of the top performers in the digital asset industry through 2030. The bank believes that as traditional financial firms move more assets on-chain, Arbitrum will gain a lucrative revenue source beyond crypto-native activity. Geoff Kendrick, the bank's global head of digital assets research, noted that the network’s economics offer considerable upside because it receives 10% of the net protocol revenue generated by companies building on it.
Key numbers and revenue changes
- Standard Chartered projects the ARB token could reach $10 by 2030, a roughly 70-fold increase from current levels.
- This projection far exceeds the bank's expected returns for Bitcoin (BTC) and Ether (ETH) over the same period.
- Arbitrum is expected to generate $5 million in revenue in September, more than five times its level before Robinhood Chain launched in July.
- ARB was valued at around $0.14 on Tuesday, having gained 86% over the past month.
- Tokenized real-world assets have reached a cumulative value of nearly $39 billion.
What the Standard Chartered note says
In a note shared with Cointelegraph, Kendrick identified Robinhood Chain, developed by the online brokerage, as the first major example of a company building on Arbitrum. He stated that Robinhood Chain has already materially changed Arbitrum’s economics. The bank's bullish thesis is heavily influenced by the growth of tokenized real-world assets. Standard Chartered forecasts that tokenized assets will reach $4 trillion by the end of 2028 as banks and asset managers bring more assets on-chain. The bank views Arbitrum as a key beneficiary because it provides the infrastructure for companies to build their own layer-2 networks and receives a share of the revenue they generate.
Risks to the price projection
Kendrick identified the biggest risks to the ARB price projection as a slower-than-expected pace of asset tokenization and increased competition from alternate blockchains. The bank has previously cited the growth of tokenization as part of its bullish outlook for other projects, including Chainlink and the broader decentralized finance sector.
