Holding made just his fourth Premier League start of the season for victory over newly-crowned champions Liverpool on Wednesday.
And Campbell reckons a consistent spell in the Arsenal side can help him fulfil his potential.
"Yeah he can develop," Campbell said on Sky Sports.
"I think having big injuries when you're a centre-half along the back, anyone really, you just want to be fit, get into the groove, week in, week out, iron out all your deficiencies in your game.
"He's a good lad yeah, I think he's really good, he's defended really well.
"I think the fans love him there as well, he just needs a run of games, run of games, and get that confidence back and cement his position in the squad."