Arthur Hayes Says Most Layer 1 Blockchains Will Collapse Except ETH SOL

TLDR

• Arthur Hayes predicts most L1 coins outside Ethereum and Solana will go to zero.
• Hayes says new L1 tokens pump early but fail due to weak long-term utility.
• He believes Monad’s MON token could drop 99% due to high FDV and low supply.
• Hayes expects Bitcoin could reach $500K by the end of 2026.

Arthur Hayes, co-founder of BitMEX, believes the majority of Layer 1 blockchain tokens outside of Ethereum and Solana are doomed to fail. In a recent interview, he warned that many of these projects are overvalued and driven by hype, lacking real long-term utility. Hayes specifically pointed to new tokens like Monad, suggesting they could drop by as much as 99% as investor excitement fades and fundamentals fail to deliver.

Most Layer 1 Tokens Expected to Fail

Arthur Hayes, co-founder of BitMEX, has said that nearly all Layer 1 (L1) blockchain tokens outside Ethereum and Solana will eventually become worthless. In an interview with Altcoin Daily, Hayes stated, “I think pretty much every other L1 besides Ethereum or Solana is a zero.” He noted that many new blockchain projects receive high early valuations without having the fundamentals to support long-term growth.

Hayes specifically pointed to Monad, a new Layer 1 backed by Coinbase Ventures. He said that its MON token, despite early gains, could fall 99% from current levels. According to him, Monad is an example of a high fully diluted valuation (FDV), low-circulating-supply token that lacks sustainable demand.

Early Gains Do Not Guarantee Longevity

Hayes explained that new Layer 1 projects often attract attention with early price surges. These are driven by investors hoping to discover the next Ethereum. He remarked, “Every coin gets their first pump… people want to believe in the new L1.”

However, he added that these early surges rarely lead to long-term success. Hayes pointed out that most of these tokens are created with heavy venture capital backing, and once the initial excitement fades, prices tend to drop sharply.

At the time of his statement, Monad’s MON token was trading around $0.037, a 45% increase from its ICO price of $0.0254. Its market cap stood at around $398 million.

Top Picks Include Ethereum, Solana, and Bitcoin

When asked about his preferred cryptocurrencies, Hayes named Ethereum, Solana, Bitcoin, Zcash, and Ethena. He believes Ethereum will be the foundation for future institutional use of blockchain technology.

According to Hayes, traditional financial firms now understand that private blockchains lack the benefits of public ones. He sees Ethereum as the network that will support financial applications through its Layer 2 solutions like Arbitrum and Optimism.

For Solana, Hayes said its recent rise came from meme coin activity, which has now declined. He noted that Solana “needs a new trick” to sustain growth, though it remains the second-largest public L1 by usage.

Bitcoin Could Reach $500K by End of 2026

Hayes also provided a forecast for Bitcoin’s price. He predicted that Bitcoin could reach $500,000 by the end of 2026, driven by future liquidity injections from the U.S. Federal Reserve. He noted that rate-cut advocate Kevin Hassett is expected to become the next Fed Chair, which could start another round of quantitative easing.

He also said that the current U.S. administration is working to gain a majority on the Federal Reserve Board. Hayes believes the next major Bitcoin cycle top may come in 2028, possibly linked to broader economic and political shifts.

Despite recent volatility, Hayes said that Bitcoin’s recent drop to $81,000 may have marked the bottom. He added that he does not expect another sharp correction soon, even in the event of a stock market downturn.

The post Arthur Hayes Says Most Layer 1 Blockchains Will Collapse Except ETH SOL appeared first on CoinCentral.