Standard Chartered Sees Arbitrum as 'Hugely Undervalued' Despite Revenue Hurdles
Standard Chartered, a prominent bank, has labeled Arbitrum (ARB) as 'hugely undervalued,' with a potential upside of 70 times its current price. This prediction is based on the expected growth of Robinhood Chain's revenue and the tokenized assets market by 2028.
According to Geoff Kendrick, the bank's head of digital assets research, Arbitrum's revenue could reach $5 million per month in September, driven by the Robinhood Chain's fee revenue. However, a significant gap exists between this potential revenue and the actual ARB holders, as the token currently has no mechanism to capture Arbitrum's revenue directly.
ARB operates as a governance token, with holders having a say in upgrades and treasury spending but not receiving a portion of the revenue. This creates a hurdle for ARB's price potential, requiring sustained growth in Robinhood Chain's revenue and Arbitrum governance approval of a mechanism to route revenue to ARB holders.