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Arthur Hayes Switches from Solana to Ethereum, Citing Divine Inspiration

In a surprising move, Arthur Hayes, the co-founder and former CEO of BitMEX, has made a significant pivot in his investment strategy, moving away from Solana and redirecting his focus towards Ethereum. This decision, as Hayes claims, stems from what he described as divine inspiration received during a moment of meditation, revealing his departure from Solana in a recent post on X dated Dec. 22.

Despite previous skepticism of Solana, even when he initially acquired its tokens in November 2023, Hayes had foreseen a potential surge for Solana, possibly surpassing the $100 price mark. However, his recent shift to Ether marks a departure from this narrative.

Despite Solana’s remarkable performance in the ongoing crypto market resurgence, outpacing Ethereum with a staggering 667% increase compared to Ethereum’s 88.5% this year, Hayes is resolute about Ethereum’s prospects. He boldly predicts Ethereum surging to $5,000, eclipsing its previous high of over $4,800 in November 2021, although without providing a specific timeframe for this surge.

The investment case for Ethereum and Solana has gradually diverged, especially with Ethereum’s pursuit of scalability through the introduction of layer-2 blockchains while Solana has maintained its singular layer structure. Ethereum’s development of various layer-2 networks, including Arbitrum and Optimism, has transformed it into a sprawling DeFi ecosystem that continues to dominate, far surpassing Solana’s DeFi investments measured by TVL (total value locked).

Despite Solana’s recent renaissance, its DeFi investments, as reflected by TVL, stand at $1.35 billion, while Arbitrum, an Ethereum layer-2 solution, boasts a TVL of $2.4 billion. This comparison underscores Ethereum’s enduring prominence in the DeFi landscape.

The divergence between Solana’s monolithic structure and Ethereum’s adoption of diverse layer-2 networks showcases varied paths in blockchain development. Modular blockchains like Celestia, emphasizing interconnected components, represent another category in this evolving landscape beyond the Ethereum-Solana dichotomy.

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