Arbitrum Sees Surge Potential, May Outperform BTC and ETH by 2030

Standard Chartered's Geoff Kendrick has made an optimistic prediction for Arbitrum's future performance. In a recent note, he argued that Arbitrum's revenue model could lead to stronger token economics and potentially outperform major benchmark assets like Bitcoin (BTC) and Ether (ETH).

Kendrick points to the network's 10% share of net protocol revenue generated by companies building on it as a key factor in his prediction. He cites Royinhood Chain, developed by online brokerage Robinhood, as an example of this mechanism in action.

According to Kendrick, Arbitrum's run-rate revenue increased significantly after the launch of Robinhood Chain in July. The network is expected to generate $5 million in revenue in September, more than five times its level prior to the launch.

Standard Chartered's base case targets ARB potentially rising to as high as $10 by 2030, contingent on tokenization growth and competition. Kendrick flags slower-than-expected asset tokenization and competing layer-1/layer-2 ecosystems as the main risks to this prediction.