Standard Chartered is bullish on Arbitrum, predicting a 50x gain for the cryptocurrency by 2030. The bank sees Arbitrum as a key player in the booming market for tokenized assets, which could grow from $340 billion today to $4 trillion by the end of the decade. Arbitrum, a Layer-2 blockchain built on Ethereum, is already attracting major financial firms like Robinhood, which recently launched Robinhood Chain in partnership with Arbitrum.
The surge in transaction volume following Robinhood Chain's launch has already generated significant revenue for Arbitrum, with the blockchain collecting over $5 million in fees in September alone. Standard Chartered highlights Arbitrum's 10% cut of net protocol revenue as a key catalyst for its growth, especially as more traditional finance firms rush to tokenize real-world assets.
However, risks remain. The pace of real-world asset tokenization could slow, and Arbitrum faces competition from other Layer-2 blockchains like Base, developed by Coinbase Global. Additionally, investor preference for Layer-1 blockchains over Layer-2 solutions could impact Arbitrum's future.
Despite these challenges, Arbitrum is currently trading at a 92% discount to its all-time high of $2.40. Even if it doesn't reach Standard Chartered's $10 target, reclaiming the $2 price level could still deliver 10x gains, making it a compelling investment to watch heading into 2027.