Standard Chartered Puts Faith in Arbitrum's Blockchain Ambitions
Standard Chartered has set a target of $10 for Arbitrum's ARB token by the end of 2030, representing a nearly 70-fold increase from its current price.
The bank initiated coverage on Arbitrum (ARB) and linked the expectation to its potential to provide blockchain infrastructure to traditional financial institutions, leading to growth in network revenues.
According to Standard Chartered's Head of Digital Assets Research, Geoff Kendrick, they expect ARB to outperform Bitcoin and Ether throughout the forecast period. The bank projects that Ether will reach $40,000 and Bitcoin $500,000 by the end of 2030.
The basis of the ARB target lies in Arbitrum's revenue model, which includes a fee equal to 10% of net protocol revenue from external chains using its technology. Standard Chartered estimates that Robinhood Chain generated an average of $2.8 million in daily fees during the first two weeks of September, implying that Arbitrum could earn approximately $5 million in AEP fees in September.
The bank's valuation thesis also includes the growth of tokenized assets, which are expected to rise from approximately $340 billion at the end of 2028 to $4 trillion. Tokenized equities are projected to reach $750 billion during the same period.