Arbitrum Is ‘Hugely Undervalued,’ Standard Chartered Says – Forecasts 70X ARB Upside After Robinhood Chain Launch

• The bank sees Robinhood Chain as early evidence that Arbitrum could become a major blockchain infrastructure provider for traditional financial institutions.
• Kendrick Geoffrey expects Arbitrum’s monthly revenue to reach about $5 million in September, more than five times its level before Robinhood Chain launched.
• Standard Chartered estimates tokenized assets could reach $4 trillion by the end of 2028, creating a large market for blockchain infrastructure providers.

Standard Chartered’s Kendrick Geoffrey initiated coverage of Arbitrum (ARB) on Monday, forecasting that the token could climb roughly 70x by the end of 2030 to $10, citing the recent launch of Robinhood Chain as evidence that Arbitrum could emerge as a leading blockchain for traditional financial institutions moving assets on-chain.

“The recent Robinhood Chain launch has demonstrated the potential for Arbitrum to become the number 1 choice for TradFi when bringing assets on-chain,” Geoff Kendrick, global head of digital assets research at Standard Chartered, told Stocktwits in an email.

Kendrick expects Arbitrum’s monthly revenue to reach about $5 million in September at the current run rate, including fees from its Arbitrum Expansion Program. He said that would represent an increase of more than fivefold from revenue levels before the Robinhood Chain launch in early July.

ARB token’s price fell 1.7% over the past 24 hours to about $0.13 amid broader market weakness. Bitcoin (BTC) declined 1.5% to roughly $77,000, while the overall crypto market was down about 0.1% at $2.73 trillion.

I think the ARB token, which is now hugely undervalued with this higher revenue base, is going to undergo a structural re-rating.

Kendrick stated that Arbitrum was one of the two dominant layer-2 blockchains built on Ethereum (ETH), alongside Coinbase’s (COIN) Base. However, unlike Base, Arbitrum has its own native token.

He added that the network’s business model extends beyond processing transactions. Arbitrum also helps traditional financial companies launch their own layer-2 networks by providing technology and support. In return, it receives a rolling fee equal to 10% of net protocol revenue.

Kendrick sees Robinhood Chain as an early example of how that model could generate revenue if financial institutions increasingly use blockchain networks to bring stocks, funds and other assets on-chain.

Tokenization Could Drive Arbitrum Revenue

Standard Chartered estimates that tokenized assets could reach $4 trillion by the end of 2028, potentially creating a significant market for blockchain infrastructure providers.

The firm expects Arbitrum to benefit from that growth and sees room for the network’s market-cap-to-fees multiple to move closer to valuations seen among major layer-1 blockchains.

However, Standard Chartered also flagged slower growth in asset tokenization and increased competition from other blockchains as potential challenges. The bank also noted that ARB currently has no direct mechanism for accruing value from Arbitrum’s revenue

ARB Has Lagged Bitcoin, Ethereum

The ARB token has struggled to keep pace with the broader crypto market. The token is down more than 27% year to date and more than 70% over the past 12 months.

Bitcoin’s price is down about 12% this year and 33% over the past 12 months, while Ethereum’s price has declined roughly 16% year to date and about 46% over the past year.

Standard Chartered’s $10 target therefore represents a sharp reversal from ARB’s current price of about $0.13. Reaching that level would require the token to gain roughly 70 times from current levels.

Read also: Ethereum’s Price Surges Past $2,600 For First Time In 8 Months: Outruns Bitcoin, XRP, Solana

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