Arthur Hayes makes a positive forecast for 2022 for ETH holders
Former head and co-founder of BitMEX crypto exchange Arthur Hayes wrote a column on why this year will be extremely important for investors in ethereum. According to the entrepreneur, ETH will become a commodity bond after the network’s transition to the Proof-of-Stake consensus algorithm, planned for the coming months.
Ethereum will attract more investment compared to other Tier 1 blockchains that some analysts call overpriced. At the same time, the main crypto coin will remain the “star” of the industry, Hayes believes, but bitcoin is “pure money” that “brings nothing.”
The former CEO of BitMEX cites data from ETH researcher Justin Drake. According to his calculations, the income of Ethereum stakers after the transition will be from 8% to 11.5% per annum.
“The Ethereum community has clearly decided that ETH is an exchange commodity used to power this computer, and not a pure monetary instrument,” Hayes said.
He pointed out that at the beginning of 2022, his portfolio had equal shares of ether and bitcoin. But, taking into account the upcoming changes, the entrepreneur intends to increase the amount of ETH to 75%.
Hayes believes the transition to Proof-of-Stake will make ETH more attractive to conservative money managers who are trying to adhere to the principles of sustainable development. The businessman pointed out the advantage of the second most popular crypto coin over direct competitors in several fundamental criteria.
“Ethereum has about 4,000 developers, which is three times more than Polkadot with the second largest cohort,” he said.
The former head of BitMEX also noted the cost-to-address ratio and TVL, highlighting that the Ethereum network is less expensive and more performant when compared to other platforms.
“The rest of 2022 will be the year of the ERC-20 angels, led by His Highness Vitalik [Buterin]. When things settle down at the end of the year, I believe ETH will be trading above $10,000,” concluded Hayes.
Ethereum has risen in price by more than 30% since the beginning of March, according to Coinbase. The price of the crypto coin is currently $3,514. Do you think Arthur Hayes’ prediction will come true?
