Arthur Hayes posits that decentralized finance tokens ETHFI and ENA could yield returns of 30–50× as the stablecoin market evolves into a multi-trillion-dollar sector.
Summary
- Arthur Hayes forecasts that stablecoins might expand into a $10 trillion market by 2028.
- He anticipates ETHFI increasing 34× and ENA 51×, highlighting them as pivotal tokens for capturing liquidity driven by stablecoins.
- Hayes contends that stablecoins will enhance utility beyond Bitcoin and Ethereum, becoming the fundamental settlement layer of the digital economy.
Arthur Hayes, co-founder of BitMEX and a prominent figure in the crypto space, asserts that two DeFi tokens could achieve remarkable growth in the coming years. In a blog post dated Aug. 27, he estimated that Ether.fi could expand 34-fold from its existing value, while Ethena (ENA) could surge 51-fold.
Stablecoins as the growth catalyst
Central to Hayes’ thesis is the rapid growth of stablecoins. He predicts the supply of dollar-backed stablecoins could escalate from $273 billion to $10 trillion by 2028. This would mark one of the largest reallocations of capital in financial history, driven by the growing adoption of on-chain dollars for transactions, savings, and yield opportunities by both investors and institutions.
While stablecoins are vital to DeFi now, Hayes believes their influence will only increase. Tokens like ETHFI and ENA, which capture fees or generate income from this fragmented market, stand to benefit the most as digital currency circulates within decentralized systems.
Why ETHFI and ENA?
Positioned within Ethereum’s staking and DeFi network, ETHFI serves as a token aimed at spending. According to Hayes, ETHFI functions as a conduit linking crypto-native assets with traditional commerce, facilitated through partnerships like Visa-connected payment cards. If stablecoins garner widespread acceptance for transactions, ETHFI may experience a substantial increase in transaction-related revenue.
ENA, associated with Ethena’s synthetic dollar USDe (USDE), provides a different perspective. By employing delta-neutral strategies within cryptocurrency derivatives markets, the protocol generates yield.
Hayes regards this as an improved stablecoin, attracting both retail and institutional investors due to its blend of dollar stability and consistent yield. The ENA token could witness remarkable growth if its adoption accelerates.
A calculated risk on DeFi’s prospects
Hayes acknowledges that these forecasts rely on optimistic assumptions, including widespread stablecoin adoption, scalable DeFi frameworks, and clarified regulatory environments. Nevertheless, he contends that the risk-reward ratio is favorable, with substantial upside potential overshadowing downside risks, encapsulated in what he describes as a “once in a century” chance.
For Hayes, ETHFI and ENA symbolize more than mere speculative investments; they reflect the future landscape of decentralized finance. Should his stablecoin vision of $10 trillion materialize, the forthcoming surge in crypto growth may emerge not from Bitcoin (BTC) or Ethereum (ETH), but from the foundation supporting on-chain dollar transactions.
