- Hayes sold 1,871 ETH this week, reducing exposure and focusing on DeFi tokens like ENA, PENDLE, and ETHFI.
- Stablecoins now dominate $48M of Hayes’ $74M portfolio, signaling a strategic hedge amid volatile crypto markets.
- ETHZilla’s 24,291 ETH sale and analyst warnings suggest Ethereum could drop below $2,800 if key levels fail.
Arthur Hayes, former BitMEX CEO, has accelerated Ethereum sales to rotate into high-quality DeFi tokens. According to blockchain analytics platform Lookonchain, Hayes deposited another 682 ETH, worth $2 million, into Binance to sell.
Over the past week, he sold a total of 1,871 ETH, equivalent to $5.53 million, signaling a major portfolio reshuffle. Hayes aims to reduce Ethereum exposure while targeting DeFi assets expected to benefit from improving liquidity conditions.
Besides these latest trades, Hayes has already purchased 1.22 million ENA tokens ($257.5K), 137,117 PENDLE ($259K), and 132,730 ETHFI ($93K). This follows his previous weekend activity when he exchanged 680 ETH for 1.2 million ENA tokens.
Hayes publicly shared on X that this rotation strategy constitutes moving “out of ETH and into high-quality DeFi names, which we believe can outperform as fiat liquidity improves.” His Ethereum holdings have now dropped from 16,000 ETH in 2022 to 3,160 ETH, with over 3,440 ETH sold since November alone.
Portfolio Adjustments and Market Implications
Moreover, data from Arkham reveals Hayes increased his USDC holdings from $1 million to nearly $48 million since mid-November. Consequently, stablecoins now dominate $48 million of his $74 million portfolio.
Hayes’ earlier positions in ENA experienced realized losses after selling portions during weaker market phases. However, he continues to believe in the long-term potential of select DeFi tokens, reflecting a strategic hedge against Ethereum volatility.
Additionally, the broader Ethereum market faces pressure. Major treasury firm ETHZilla recently offloaded 24,291 ETH for $74.5 million to repay loans, further impacting Ethereum’s price.
Crypto analyst Ted warns that if ETH fails to surpass key levels, it may drop below $2,800. These signals, combined with Hayes’ sell-off, hint at a sustained bearish sentiment for Ethereum.
