Arthur Hayes Dismisses Monad, Backs Ethereum and Solana Dominance
BitMEX co-founder Arthur Hayes expects most layer-1 blockchain networks to fade, arguing that solely Ethereum and Solana have the institutional use instances wanted to outlive long run.
In a November 28 look on the Altcoin Daily podcast, Hayes stated the rising record of other base-layer blockchains has not modified his view. He nonetheless expects the market to consolidate round a small group of dominant networks.
Why Hayes Thinks Ethereum and Solana Will Endure
Hayes argued that Ethereum’s role in institutional adoption is central to its sturdiness.
According to him, Ethereum might be utilized by these buyers to realize their Web3 objectives, whereas he expects a “basket of primary public L1s” to stay related within the years forward.
“Ethereum, this entire ecosystem, goes for use by TradFi to realize no matter they wish to do inside Web3…Ethereum is clearly successful and going to maintain successful,” he said.
He pointed to Solana as the one different chain with comparable endurance. Hayes cited the community’s latest rebound, although he stated its subsequent progress driver is unclear.
According to him, the meme coin frenzy on Solana has petered out, and the community would want to search out “new methods” to spice up its progress.
“Solana wants a brand new trick. 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,” Hayes famous.
Despite that optimism, Hayes stated Solana is unlikely to outperform Ethereum over time. He added that “just about each different L1 apart from Ethereum or Solana is a zero.”
Ethereum and Solana stay the 2 largest layer-1 networks by market capitalization and have attracted institutional attention from firms such as Franklin Templeton.
Bearish View on Monad
Meanwhile, Hayes was way more skeptical about Monad, which launched its MON token and public blockchain this week.
The undertaking markets itself as a high-performance layer-1 with parallelized execution suitable with the Ethereum Virtual Machine, prompting some trade individuals to name it the “subsequent ETH killer.”
Hayes rejected that characterization by declaring that “just about each different L1 apart from Ethereum or Solana is a zero and they’re not going to do very nicely.”
He described Monad as “one other bear chain” and predicted the token “goes to go down 99% as a result of it’s one other high-FTV, low-float piece of VC lint.”
Though he acknowledged shopping for some MON tokens, he stated its early value strikes don’t translate into sturdy worth.
“Every coin will get their first pump, and folks wish 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. But once more, that doesn’t imply that it’s going to really have any actual use case,” Hayes emphasised.
Considering this, Hayes stated his broader market thesis nonetheless facilities on Bitcoin, Ethereum, and Solana, however famous that ZCash and Ethena may spherical out his top-five record.
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