Arthur Hayes says most L1s exterior Ethereum and Solana are headed to zero

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Arthur Hayes, co-founder of crypto derivatives trade BitMEX, mentioned he expects most layer 1 blockchain cash exterior Ethereum and Solana to fail, together with Monad, a just lately launched layer 1 backed by Coinbase Ventures.

“I believe just about each different L1 moreover Ethereum or Solana is a zero,” mentioned Hayes, talking in an interview with Altcoin Every day. “And so they’re not going to do very properly.”

Hayes predicts Monad’s MON will crash 99% as its valuation is inflated relative to fundamentals, making a deep drawdown doubtless.

“I believe it’s going to be one other bear chain. It’s going to go down 99% as a result of it’s one other excessive FDV, low-flow piece, VC L1,” he added.

MON is buying and selling at roughly $0.037, up 45% from its ICO worth of $0.0254, CoinGecko information reveals. The coin has achieved a market capitalization of round $398 million.

Based on Hayes, new L1 tasks usually expertise an preliminary worth surge, pushed by traders hoping to copy early Ethereum beneficial properties.

“Each coin will get their first pump. And folks need to imagine within the new L1 as a result of all people needs to put money into the brand new Ethereum, like they’d have in 2014 when everybody missed it, me included,” Hayes famous, including that preliminary hype doesn’t translate to long-term viability, nonetheless.

When requested which protocols would make up his “magnificent 5” in crypto, Hayes pointed to Ethereum, Solana, Bitcoin, Zcash, and Ethena.

Based on information tracked by Lookonchain, Hayes accrued 873,671 ENA this week after promoting over $5 million ENA two weeks earlier. He additionally added ZEC amid the current worth rally.

Ethereum stays best choice for establishments, Solana appears for subsequent enhance

On Ethereum, Hayes mentioned he believes Ethereum has turn into the selection for institutional adoption of web3. He argued that enormous banks and organizations have realized personal blockchains don’t provide actual utility, and that public chains are important for safety and significant utilization.

Based on Hayes, Ethereum will function the spine for TradFi exercise, with L2 options similar to Arbitrum and Optimism serving to to handle privateness and scalability wants. He expects Ethereum’s ecosystem to drive the subsequent part of adoption and worth progress.

Relating to Solana, Hayes famous its sturdy efficiency and standing because the second-largest public L1, largely due to its earlier rally to meme coin exercise. Nevertheless, he mentioned that meme-driven progress has slowed and Solana now wants a brand new catalyst to maintain momentum.

“Meme cash have form of died by way of exercise relative to what it was in form of like 2023 and 2024. Solana wants a brand new trick.” Hayes mentioned. “I don’t know what that new trick is. However once more, it’s the quantity two largest L1. I believe they’ll discover one thing.”

“Will or not it’s sufficient to energy worth efficiency higher than Ethereum? I don’t assume so,” he added.