Arthur Hayes turns his attention to DeFi instead of memecoins since he abandoned the focus on speculative tokens and started exploring high-yield opportunities in decentralized finance.
The co-founder of BitMEX, who was an active investor in popular meme tokens such as PEPE and MOTHER, is currently sponsoring the projects he thinks provide actual returns to token holders.
Hayes Turns to DeFi Protocols
Hayes said in a discussion with investor Kyle Chasse that memecoins are no longer a fit for the kind of capital he wishes to commit to. He claimed that DeFi projects that offer sustainable yields are more valuable in the long-term perspective. Hayes has supported EtherFi, Ethena, and Hyperliquid, all of which he says could be improved by rising stablecoin and yield demand.
Long-Term Targets and Projections
Hayes announced ambitious buy targets for 2028, in which he aims to make a return exceeding 100 times the cash invested in it. He estimated that EtherFi had a chance to increase 34 times, Ethena 51 times, and Hyperliquid 130 times. These protocols are unique, as they are revenue-generating, their product-market fit, and token holders are rewarded instead of creating an accumulation of profits among venture capital companies and insiders (Hayes). He emphasized the fact that investors have dismissed projects that do not make money or those that do not distribute revenues to their communities.
Bitcoin Remains Central to Strategy
This change notwithstanding, Hayes clarified that he is not giving up on Bitcoin. He said that cryptocurrency is the strongest-performing asset of the money-printing age and stated that it might reach $700,000 prior to 2030. According to Hayes, the bigger bull case is now DeFi because he anticipates that trillions of dollars will move into stablecoins and into the on-chain markets.
Hayes also scolded the idea of Bitcoin falling behind gold and stocks since, over the last ten years, Bitcoin has had an average annualized gain of over 80%. Bitcoin is currently trading at approximately 115,775 against a peak of 124,290. In comparison, gold recently reached an all-time high of $3,674 per ounce, and the S&P 500 was also at record levels. These milestones, says Hayes, are not that big a deal when compared to the role that Bitcoin will play in safeguarding against currency debasement.
