Arthur Hayes Identifies Major Undervalued Crypto Asset
Arthur Hayes, co-founder of BitMEX and head of the Maelstrom investment fund, believes that the major crypto asset Ethereum remains one of the most undervalued in the market, despite its potential to grow rapidly by three to five times, according to the entrepreneur.
Why Hayes is Betting on Ethereum
In an interview with Cointelegraph, Arthur Hayes named Ethereum as his top choice among major coins. He explained his position by noting that this cryptocurrency has shown weak performance over the past five years compared to market expectations and, in his assessment, still appears undervalued.
A major crypto asset is typically considered a coin with a large market capitalization, high liquidity, and significant trading volume. Such assets are easier to buy or sell in large quantities, and their dynamics are more convenient to compare with the rest of the market.
Hayes emphasized that Ethereum remains the only major crypto asset that, according to him, has failed to surpass its peak from 2021. However, data from CoinMarketCap shows a different picture: in August of last year, ETH rose to $4,953.
In the past month, the price of ETH has increased by about 30%. According to CoinMarketCap, Ethereum's metrics looked like this:
- Cryptocurrency: Ethereum (ETH)
- Current Price: $2,474
- Market Capitalization: $298.6 billion
- Daily Trading Volume: $6.4 billion
Everyone hates Ethereum.
This is how Hayes described part of the market's attitude towards the asset. However, he also acknowledged that key decentralized finance (DeFi) applications are being built on Ethereum, and the network maintains the largest ecosystem of developers. In his opinion, investors may need to see a more noticeable price increase before the fundamental advantages become the main argument in favor of the coin.
- Fundamental advantages of Ethereum: developed DeFi ecosystem and large developer base.
- Reasons for undervaluation: weak performance over the past five years and a skeptical attitude from part of the market.
- Factors that could influence price growth: supply and demand, news, technological updates, regulation, and overall investor sentiment.
ETH vs HYPE: Different Risk-Return Ratios
Arthur Hayes believes that for newcomers to the crypto market, ETH offers a more understandable balance of risk and potential return than Hyperliquid with the HYPE token. At the same time, he does not hide that he himself is waiting for further growth of HYPE.
According to the head of Maelstrom, HYPE has become the most successful major cryptocurrency of the last cycle. The fund bought tokens at around $30 and exited the position at about $75.
If we look only at Hayes's theses, his asset set with different profiles looks like this:
- Ethereum: undervalued major asset with a large ecosystem.
- HYPE: a riskier token, which Hayes still expects to grow.
- Bitcoin: a base asset for which Hayes maintains a long-term optimistic outlook.
In the market, such assessments are often compared with the dynamics of other major networks, including Solana, but Hayes emphasizes the combination of Ethereum's scale, liquidity, and accumulated infrastructure. For a portfolio investor, such an asset is evaluated not only by its current price. Typically, several factors are considered:
- Current price.
- Risk.
- Liquidity.
- Ability to generate income in the future.
Bitcoin Forecast and ENA-Related Transactions
Hayes also reiterated his long-term optimistic view on Bitcoin. Bitcoin remains the largest cryptocurrency by market capitalization, and Hayes expects that in the next four years, the price of the first cryptocurrency could rise to $1 million. The main backdrop for such a scenario, according to the entrepreneur, is the massive monetary issuance by central banks, especially in light of the policies that investors in the United States are closely monitoring.
In early August, a crypto address associated with Arthur Hayes purchased 10.9 million ENA tokens for nearly $985,000. The transaction took place on the decentralized platform Paraswap, and analysts from Lookonchain drew attention to it.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
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