Standard Chartered Predicts Arbitrum ARB Could Reach $10 by 2030
Standard Chartered believes Arbitrum (ARB) could outperform both Bitcoin (BTC) and Ether (ETH) by 2030, reaching a price of $10. This prediction is based on the potential economic benefits of the layer-2 network as traditional financial institutions move more assets onto the blockchain.
Arbitrum’s Economics and Robinhood Chain:
According to Geoff Kendrick, Standard Chartered’s global head of digital assets research, Arbitrum’s revenue model, which includes a 10% share of net protocol revenue generated by companies building on it, is a significant advantage. The launch of Robinhood Chain, a major example, has already boosted Arbitrum’s September revenue to $5 million, a substantial increase from its previous levels.
Projected Growth and Risks:
Kendrick forecasts a steady rise in ARB, driven by tokenized asset growth, which has reached a cumulative value of nearly $39 billion. However, risks to this projection include a slower-than-expected pace of asset tokenization and competition from alternative blockchains.
Tokenized Assets and Decentralized Finance:
Standard Chartered’s bullish stance on Arbitrum is aligned with the broader trend of tokenized assets, expected to reach $4 trillion by 2028. The bank highlights Arbitrum’s potential as infrastructure for companies to build layer-2 networks, positioning it to benefit from this growth.
This view is also reflected in their positive outlook on Chainlink and the decentralized finance (DeFi) sector as a whole.
Related Stories:
- Nvidia considering a potential $10 billion investment in Anthropic (a AI company), according to Reuters.
- Bitwise withdrawing its Dogecoin ETF less than a year after launching.
- Tether and Fasanara launching a $400 million private credit fund targeting $3 billion.