Arbitrum Token Soars 45% as Robinhood Blockchain Takes Off

Arbitrum's token (ARB) has surged by 45% in the past week, thanks to Robinhood Markets launching its own blockchain on July 1st, which runs on Arbitrum's technology. The new chain brought in $4.3 million in revenue on September 3rd, with fees paid after costs, outpacing Arbitrum's own network, which collected just $365,060 in gross fees during all of August.

The Arbitrum Expansion Program requires chains built on its tech to pay 10% of their net chain profit back to the network, with 8% going to a decentralized autonomous organization (DAO) for governance and 2% to a developer 'guild' for new features. This setup could lead to increased value for the token as the revenue from Robinhood's chain accrues.

However, holders of Arbitrum's token don't have direct exposure to this upside, with no mechanism to constrain supply or pay dividends. Despite this, one analyst recommends buying a small allocation of ARB once the initial hype has dissipated.