"Arthur Hayes, a Major Ethereum Critic, Predicts a Potential Doubling of Ethereum's Price in 2022"
Analysts speculate that Ethereum, the world's largest smart contract platform, could achieve an all-time high of $5,000 this year, buoyed by the growth of stablecoins and the proliferation of layer-2 networks.
In a conversation at Bitcoin 2025 in Las Vegas, Bitcoin billionaire and former BitMEX CEO, Arthur Hayes, expressed his optimistic outlook on Ethereum's upcoming price action. "I think ETH could go to $4,000 or $5,000 this year," Hayes told Decrypt. "I think it's the most hated asset in a turn of the cycle, so I think ETH could outperform."
To hit $5,000, Ethereum would need to surge around 88% from its current trading price of approximately $2,650. The asset's recent underperformance relative to competing layer-1 coins like Bitcoin and Solana appears to be changing, as momentum builds for Ethereum, which has recently gained more than 45% in value.
Investment firm Bernstein points to stablecoins driving interest back to the Ethereum network as a key factor behind Ethereum's recent performance. The firm notes that Ethereum accounts for 51% of all stablecoin supply minted, a figure that points to strong demand for the second-largest cryptocurrency by market cap.
Bernstein also highlighted the potential growth of Ethereum via layer-2 networks, mentioning Robinhood's acquisition of WonderFi, which operates its own ETH layer-2 network. Layer-2 chains are built on top of the Ethereum blockchain and utilize ETH as the gas fee currency, which can help drive demand and distribution for the cryptocurrency.
Options markets have become more optimistic about Ethereum's price, and recent analyst predictions have echoed Hayes' bullish sentiment. Investment analysts at Standard Chartered have set a price target of $4,000 for 2025 and $7,500 by 2029.
These bullish predictions echo an earlier prediction from Hayes, who forecasted that Bitcoin could reach $1 million by 2028.
In recent months, Ethereum has faced criticism for its slow performance and challenging ecosystem, with Ethereum co-founder Vitalik Buterin adopting a more aggressive tone on social media earlier this year. However, the Ethereum Foundation has made changes to its strategy and leadership in an effort to address these concerns.
As Ethereum continues to evolve and improve, many analysts believe that it remains well-positioned for growth compared to its competitors. The successful rollout of the Pectra upgrade, which introduced "blobs" (proto-danksharding) and significantly improved Ethereum's scalability, is further evidence that the platform is moving in the right direction.
Overall, the factors driving analysts' predictions of an Ethereum price of $5,000 in 2025 include improvements in Ethereum's layer 2 solutions, the growth of stablecoins, and changes in market sentiment. Ethereum's price action is expected to be influenced by institutional buying, ongoing upgrades to the platform, and the perceived utility of Ethereum compared to competing layer-1 coins.
- Arthur Hayes, former BitMEX CEO and Bitcoin billionaire, anticipates Ethereum's price to reach $4,000 or $5,000 this year, citing it as the most hated asset in a turn of a cycle.
- To reach $5,000, Ethereum needs to surge around 88% from its current trading price of approximately $2,650.
- The growth of stablecoins and the proliferation of layer-2 networks are driving interest back to the Ethereum network, contributing to its recent performance.
- Ethereum accounts for 51% of all stablecoin supply minted, indicating strong demand for the second-largest cryptocurrency by market cap.
- Layer-2 chains, built on top of the Ethereum blockchain, utilize ETH as the gas fee currency, which can help drive demand and distribution for the cryptocurrency.
- Investment analysts at Standard Chartered have set a price target of $4,000 for 2025 and $7,500 by 2029, supporting the bullish sentiment towards Ethereum.
- The Ethereum Foundation has made changes to its strategy and leadership to address concerns about the platform's slow performance and challenging ecosystem, positioning Ethereum for potential growth compared to its competitors.
