Arthur Hayes switches from Solana to Ether, attributing divine inspiration as the reason
Solana, the current favorite among crypto investors, is being abandoned by one unusual investor who believes that Ether will ultimately prevail. Arthur Hayes, the co-founder and former CEO of crypto exchange BitMEX, recently revealed that he has sold his Solana investments and switched to Ether. Hayes claims that this decision was inspired by a divine message he received while meditating. Despite previously criticizing Solana, Hayes did acknowledge that the project could surpass the $100 price mark based on its current rally.
Hayes’ choice to dump Solana for Ether goes against the prevailing narrative, as Solana has outperformed Ether in the current crypto market boom. Solana’s spot price has surged by over 667% this year, while Ether has only managed an 88.5% increase.
However, Hayes predicts that Ether will reach $5,000, surpassing its previous peak of over $4,800 achieved in November 2021. He does not provide a timeframe for this prediction.
When considering the investment thesis for Ethereum and Solana, it becomes evident that the two blockchains have taken different paths. Ethereum has focused on scalability by implementing layer-2 blockchains, such as Arbitrum and Optimism. Even centralized exchanges like Coinbase have launched their own layer-2 networks. As a result, Ethereum’s DeFi ecosystem has become extensive and dominant, surpassing all other competitors, including Solana.
Despite Solana’s recent resurgence, its total value locked (TVL) in DeFi investments is only $1.35 billion, according to DefiLlama data. In comparison, Arbitrum, an Ethereum layer-2 solution, has a TVL of $2.4 billion.
It is important to note that while Solana and Ethereum represent different approaches to blockchain development, they are not the only options available. Modular blockchains like Celestia, with their interconnected components, offer another alternative.
In summary, Arthur Hayes’ decision to switch from Solana to Ether is an unconventional move. While Solana has been performing exceptionally well, Hayes believes that Ether will ultimately reach new heights. The investment strategies of Ethereum and Solana have diverged, with Ethereum’s layer-2 networks dominating the DeFi landscape. However, other blockchain development approaches, such as modular blockchains, are also gaining traction.
