Arthur Hayes reduces his position in Ethereum and transfers millions to DeFi

Crypto veteran and BitMEX co-founder Arthur Hayes recently adjusted his portfolio composition. He sold a significant amount of Ether in order to reallocate these funds towards several decentralized finance projects. The move comes as Ethereum is going through a period of weak price momentum, despite steadily growing network activity. Hayes' moves have sparked mixed reactions within the crypto community, in a context where DeFi tokens generally remain under pressure.

More than 60% of Arthur Hayes' portfolio now held in DeFi assets and stablecoins

Over the past two weeks, Arthur Hayes has reportedly sold 1,871 ETH, for a value of around $5.53 million. Funds from these sales were reallocated to several DeFi protocols, with the main position going to PENDLE. On-chain data indicates that he acquired nearly a million PENDLE tokens, worth approximately $1.75 million. Other notable purchases include 2.3 million LDO tokens, valued at $1.29 million, 6.05 million ENA for around $1.24 million, as well as 491,000 ETHFI, worth almost $343,000.

Previous transactions observed by market analysts suggest similar dynamics. Notably, Hayes transferred approximately $2 million in ETH, or 682 tokens, to Binance. He also moved nearly $2.52 million directly from exchanges into DeFi positions. Following these movements, more than 60% of its portfolio is now made up of DeFi assets and stablecoins, while ETH only represents a minority share.

Portfolio data shows a heavy concentration on PENDLE, which makes up almost half of its holdings. LDO and ETHFI also hold significant positions. Although these three tokens are moving in a downtrend, Hayes appears ready to hold his positions despite the current market weakness.

Details of Hayes' recent strategy include:

• The sale of 1,871 ETH over a two-week period, for an estimated amount of $5.53 million.
• A primary DeFi allocation to PENDLE, representing approximately $1.75 million.
• Complementary positions in LDO, ENA and ETHFI.
• Over 60% of total assets now held in DeFi tokens and stablecoins.
• Reduced exposure to ETH, despite historic commitment to Ethereum.

Mixed reaction on X following Hayes' move from Ethereum to DeFi

Reactions to X were mixed. Some users have welcomed this repositioning towards DeFi, believing that it corresponds to current market conditions. One message notably highlighted that this decision could be justified amid perceived delays in some Ethereum upgrades. Other observers, however, pointed out that the returns offered by DeFi are generally accompanied by higher levels of risk. Some critics have also suggested that Hayes might act on the basis of market information not available to the general public.

The price of Ethereum is still struggling to sustainably return above the $3,000 threshold, which continues to weigh on general sentiment. Network data, on the other hand, demonstrates notable resilience. Etherscan reported up to 2.2 million transactions processed in a single day this week, setting a new weekly record. Transaction fees also remain well below the peaks of May 2022, during which they exceeded $200 per transaction.

Lower fees had previously prompted many users to turn to layer-2 solutions. The recent increase in activity on the mainnet, however, could signal a renewed interest in the direct use of layer-1. Developer activity also remains strong: according to Token Terminal data, 8.7 million smart contracts were deployed during the fourth quarter, driven by the tokenization of real assets, stablecoins and infrastructure development.

Ethereum finally retains a central place in the stablecoin ecosystem, hosting more than half of a total supply estimated at $307 billion. RedStone researchers describe the network as an institutional standard, due to its security and depth of liquidity. Despite increased competition from Solana, Avalanche and BNB Chain, Ethereum remains a major pillar of the digital asset ecosystem.