Arbitrum Token Surges 45% Amid Robinhood Blockchain Tie-Up

Arbitrum's (ARB) token price has surged by 45% in the last week, its strongest performance in at least two years. This uptrend is largely attributed to Robinhood Markets' (HOOD) recent launch of its own blockchain on July 1, which runs on Arbitrum's technology.

The new chain generates significant revenue for Arbitrum, with Robinhood Chain taking in $4.3 million in fees on September 3 alone. This is more than the $365,060 Arbitrum collected in gross fees throughout all of August.

As part of its Expansion Program, chains built on Arbitrum's technology must pay 10% of their net chain profit back to Arbitrum. Eight percent goes to the network's governance DAO and 2% supports a developer 'guild' that works on new features.

Alex Carchidi, an analyst, suggests that despite the lack of holder-friendly policies, Arbitrum is now connected to a cash spigot from Robinhood's chain. With more capital available for further development, Arbitrum could become formidable in the market.