Former Bitmex CEO Arthur Hayes has sold off a significant portion of his Ethereum (ETH) holdings and reinvested $6 million (approximately KRW 8.67 billion) in decentralized finance (DeFi) tokens. This strategic portfolio adjustment is intended to bet on projects with "high growth potential" in anticipation of increased fiat liquidity.
DeFi-first strategy... Focus on buying Pendle, Lido, and Ethena.
According to blockchain analytics firm Lookonchain, Hayes sold a total of 1,871 ETH (approximately $5.61 million, approximately KRW 8.11 billion) over the past two weeks, redistributing approximately $4.6 million (approximately KRW 6.64 billion) of which to DeFi-related tokens. Specifically, he allocated $1.8 million (approximately KRW 2.6 billion) to Pendle, $1.3 million (approximately KRW 1.88 billion) to LidoDAO (LDO), $1.2 million (approximately KRW 1.73 billion) to Ethena (ENA), and approximately $340,000 (approximately KRW 490 million) to Ethereum (ETHFI).
A few minutes later, he made additional purchases in Ethena and EtherFi. According to public data, Hayes purchased an additional 4.86 million ENA (approximately $986,000, or approximately KRW 1.42 billion) and 690,000 ETHFI (approximately $485,000, or approximately KRW 700 million), bringing his total investment to over $6 million.
Rotating from Ethereum to High-Growth DeFi
Hayes had already signaled a shift in his investment strategy on social media platform X earlier this month, stating at the time that he was "shifting his portfolio away from ETH and towards 'high-quality DeFi projects,'" arguing that "the return of fiat liquidity could present greater opportunities for these projects."
This strategic rebalancing pattern has been repeated before. He sold ETH, Ethena, and EtherFi during a market correction last November, and in August of last year, after taking a large profit, he humorously declared he would never take profits again.
Market sentiment is mixed: "Strategic decision" vs. "hasty response."
This investment shift has sparked mixed reactions within the cryptocurrency community. Some have interpreted it as a bullish signal for the DeFi sector and welcomed it, while others have urged caution, arguing that Hayes is liquidating his holdings at a loss.
One user warned, "He often sells assets at a loss. Buying now might be premature."
DeFi token yields rebound short-term, but long-term recovery remains uncertain.
Price data reveals the background to this caution. According to CoinGecko, Ethereum is currently trading around $3,000 (approximately 4.34 million won), up 5% over the past 30 days but still about 11% lower than a year ago.
Meanwhile, the DeFi tokens Hayes selected have recently seen a short-term rebound, but their year-to-date performance remains weak. Pendleton rose 14% for the week to around $2 (approximately KRW 2,890), but has fallen more than 60% year-to-date. LidoDAO's LDO rose 11% for the week to $0.60 (approximately KRW 867), but has fallen 68% over the past 12 months.
Ethena is trading around $0.20 (about 289 won), down 15% over 30 days and over 75% year-to-date, while EtherFi is down over 90% from its high earlier this year at around $0.70 (about 1,012 won).
๐ Market Interpretation
Arthur Hayes has reduced his ETH holdings and shifted his portfolio toward a DeFi-focused portfolio. This is interpreted as a strategy to proactively position himself in high-growth sectors, anticipating increased fiat liquidity in the economic cycle.
๐ก Strategy Points
Rebalancing focused on mid- to long-term growth potential over short-term returns. Focused on overall sector trends rather than individual project performance.
๐ Glossary
Pendle: A DeFi platform that allows tokenized future earnings to be traded.
Lido DAO: A liquidity staking service that allows ETH staking to run in parallel with Ethereum 2.0.
Ethena (ENA): A stablecoin-based yield-generating protocol.
Ether.fi: ETH liquidity and staking solution.
๐ก Want to know more? AI-prepared questions for you:
A. Arthur Hayes is the co-founder and former CEO of BitMEX, a cryptocurrency derivatives exchange. He is known as an influential investor in the cryptocurrency industry and currently works as an individual trader.
A. This is because macroeconomic trends, such as interest rate cuts and expectations of increased liquidity, may be favorable for the growth of DeFi projects. Some investors believe that DeFi tokens that have significantly declined in value may enter a recovery phase.
A. Pendle is a platform for trading tokenized earnings, while Lido enhances the convenience of ETH staking. Ethena is a stablecoin-based earnings protocol, and EtherFi is a liquidity-providing ETH staking service.
A. Given the high volatility of token prices and the significant annual declines, it's important to consider your own investment strategy and risk tolerance. Purchases by renowned investors should only serve as a guideline; careful diversification is essential.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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