Arthur Hayes Snaps Up $4M in DeFi Tokens via Ethereum Sell-Off

Arthur Hayes, a high-profile trader and co-founder of BitMEX, has once again made headlines in the crypto industry with his significant Ethereum sell-off. After dumping $5.53 million worth of ETH, Hayes purchased multiple DeFi tokens, including PENDLE, LDO, ENA, and ETHFI. This underscores a notable shift in his investment strategy, signaling a bold bet on the future of decentralized finance.

Why Arthur Hayes is Going All-In on DeFi Tokens?

According to on-chain analyst Lookonchain’s latest X post, BitMEX co-founder Arthur Hayes has sold his massive ETH holdings to invest more in DeFi tokens. Reportedly, he dumped 1,871 Ether tokens, worth $5.53 million, and expanded his DeFi portfolio in two weeks. His purchases included 961,113 PENDLE, worth $1.75 million, 2.3 million LDO, valued at $1.29 million, 6.05 million ENA, equivalent to $1.24 million, and 491,401 ETHFI, worth $343k.

In addition to the Ethereum sell-off, Arthur Hayes has withdrawn $2.52 million from exchanges, redirecting it to DeFi tokens. As a result, the investor’s crypto portfolio is now dominated by DeFi tokens and stablecoins, accounting for over 60%, with his ETH holdings declining significantly. Among the DeFi allocation, PENDLE stands out, constituting a majority of the holdings. With a 48.9% DeFi allocation in PENDLE, Arthur Hayes is clearly signaling his confidence in the token.

Significantly, Arthur Hayes’ strategic reallocation is part of his plan to invest more in undervalued assets in the DeFi space. While tokens like PENDLE, LDO, and ETHFI have been facing severe downward trends recently, Hayes remains bullish about their future, driven by improving fiat liquidity.

Ethereum Selling Pressure Sparks Concerns

While Arthur Hayes’ latest portfolio diversification strategy is sparking widespread optimism across the DeFi space, his Ethereum sell-off is raising concerns. With the ETH price still hovering below the critical $3k level, the increasing selling pressure is intensifying the negative sentiment.

This is not the first time Hayes has dumped his ETH tokens for DeFi cryptocurrencies. Recently, as CoinGape reported, Hayes moved 682 ETH, valued at $2 million, to Binance, signalling a sell-off. This move was followed by a series of similar developments, where he ditched ETH for DeFi tokens like PENDLE.

As his decision underscores in preference for DeFi tokens over Ethereum, it casts a shadow over the future of the altcoin. He believes that fiat liquidity enhancements could disproportionately benefit DeFi tokens over large-cap layer-one assets like Ether. This has further fueled the prevailing bearish sentiment surrounding Ethereum cryptocurrency.