Arthur Hayes, the influential co-founder and former CEO of BitMEX, and now Chief Investment Officer at Maelstrom, has publicly identified Ethereum (ETH) as his premier cryptocurrency selection. Speaking on Friday, August 29, 2026, Hayes projected that Ethereum could see a substantial increase, surging “3 to 5 times” its current valuation “pretty quickly.”
His bullish stance emerged as Ethereum traded around $2,435, having experienced a 3% dip in the 24 hours leading up to his remarks. This prediction offers a strong counter-narrative to recent market sentiment, highlighting a potentially undervalued asset.
Arthur Hayes Crowns Ethereum His Top Crypto Pick
Hayes’s declaration marks a significant endorsement for Ethereum, the second-largest cryptocurrency by market capitalisation. He didn’t mince words during an interview with Cointelegraph, stating unequivocally, “My number one pick right now is Ethereum.”
The conviction behind his forecast stems from what he perceives as Ethereum’s relative stagnation since its last peak. This perspective suggests that while other digital assets have seen considerable appreciation, Ethereum has lagged, positioning it for a dramatic catch-up.
For Hayes, this isn’t a mere speculative play but a calculated “market positioning play” and a “structural bet” within Maelstrom. He believes that if fresh capital rotation occurs, Ethereum’s price could rapidly climb several multiples, offering a compelling entry point.
Hayes’s conviction is further bolstered by observations of the broader market. He noted that the recent rise in both Ethereum and Bitcoin prices indicates that people are waiting to buy. This suggests a potential for significant capital rotation into ETH, which Hayes believes could drive its price rapidly higher.
He sees Ethereum outperforming other major-cap crypto assets during the current tentative return of crypto demand liquidity rebound.
The Rationale Behind Ethereum’s Potential Surge
Hayes attributes his robust outlook for Ethereum to its distinct market position. He pointed out that it remains “the one mega-cap crypto that has not eclipsed its 2021 all-time high,” suggesting a significant discount compared to its potential.
This underperformance, Hayes argues, makes Ethereum a more attractive risk-reward proposition than assets like Hyperliquid (HYPE), which have already recorded substantial gains. Hyperliquid, he noted, now faces higher market expectations, limiting its upside.
Despite his criticisms of the Ethereum Foundation, which he playfully called “a bunch of jokers,” Hayes remains deeply bullish on the underlying asset. He values Ethereum’s foundational role in decentralised finance (DeFi) and its extensive developer ecosystem.
The strength of Ethereum’s ecosystem provides a resilient base that transcends individual institutional politics. It means a continuous stream of innovation and utility, which ultimately drives demand and value for ETH.
Hayes’s Long-Term Vision for ETH and Market Shifts
Hayes’s recent prediction of a quick 3x to 5x surge isn’t his only ambitious forecast for Ethereum. Earlier, on August 24, 2026, during an Altcoin Daily podcast, he articulated a long-term vision, suggesting ETH could hit $20,000, $25,000, or even $30,000 within five years.
However, this longer-term target is contingent on Bitcoin (BTC) reaching the $200,000 mark, illustrating the interconnectedness he sees within the broader crypto market. Hayes sees Ethereum as a primary beneficiary in an environment of increasing liquidity.
He anticipates that Ethereum will “outperform all other major-cap crypto assets” during the current cryptocurrency market liquidity rebound. This suggests a significant shift in market dynamics, where Ether leads charge, potentially capturing a larger share of investor interest.
Hayes also expects Bitcoin’s market dominance, currently around 60%, to decrease to about 40%, with Ethereum absorbing much of that shift. He doesn’t foresee dominance dropping to the 25-26% levels seen during the DeFi Summer of 2020-2021, but a substantial rebalancing.
Previous statements from Hayes underline his consistent bullish stance on Ethereum. In an October 24, 2025 podcast, he indicated that ETH could “easily” reach $10,000 by year-end. Even earlier, in May 2025, he projected a potential doubling to $4,000 or $5,000 within that year.
A critical technical level for further gains, according to Hayes, is the $3,000 mark. He believes a sustained break above this resistance would trigger “reflexive buying,” potentially propelling prices well past $5,000. This momentum, driven by investor psychology and market structure, is crucial for unlocking Ethereum’s next leg up.
Maelstrom’s Strategic Bet and Other Holdings
Ethereum holds a significant position within Maelstrom’s investment portfolio. Hayes confirmed that ETH is the firm’s largest holding, excluding Bitcoin, a testament to his confidence in its long-term viability and lower perceived risk of failure.
This strategic allocation underscores Maelstrom’s conviction in Ethereum as a foundational and enduring asset, capable of weathering market volatility. The decision highlights a deep belief in its systemic importance to the crypto ecosystem.
Beyond Ethereum, Hayes also identified Ethena (ENA) as another asset presenting a strong risk-reward profile. ENA, he explained, tends to benefit when the synthetic dollar trade becomes expensive, a scenario that often coincides with Bitcoin rallies and heated funding markets.
Hayes’s portfolio strategy reflects a nuanced understanding of market mechanics and asset interdependencies. His focus on Ethereum as a structural bet, alongside tactical plays like ENA, provides insight into how he navigates the complex crypto landscape.