Arthur Hayes Cuts Ethereum Exposure, Shifts Millions Into DeFi as Ethereum Activity Rises

Crypto veteran and BitMEX co-founder Arthur Hayes has adjusted his portfolio, selling a significant amount of Ether and reallocating funds into decentralized finance projects. The move comes as Ethereum faces weak price momentum while network activity continues to grow steadily. Hayes’ actions have drawn mixed reactions across the crypto community, particularly as DeFi tokens remain under pressure.

Over 60% of Arthur Hayes’ Portfolio Now Held in DeFi Assets and Stablecoins

Over the past two weeks, Hayes reportedly sold 1,871 ETH, valued at approximately $5.53 million. The proceeds were redirected into several DeFi tokens, with the largest allocation going to PENDLE. Blockchain data shows that he purchased nearly 1 million PENDLE tokens worth about $1.75 million. Additional purchases included 2.3 million LDO valued at $1.29 million, 6.05 million ENA worth roughly $1.24 million, and 491,000 ETHFI valued at close to $343,000.

Earlier transactions observed by market watchers point to a similar trend. Hayes transferred roughly $2 million in ETH, or 682 tokens, to Binance. He also moved around $2.52 million from exchanges directly into DeFi positions. Following these transactions, more than 60% of his portfolio is now composed of DeFi assets and stablecoins, while Ethereum accounts for a smaller share.

Portfolio data show a strong concentration in PENDLE, which accounts for nearly half of his holdings. LDO and ETHFI also account for notable portions of the portfolio. All three tokens remain in a downtrend, though Hayes appears willing to hold despite current weakness.

Details of Hayes’ recent strategy include:

• The sale of 1,871 ETH over a two-week period, valued at about $5.53 million.
• A primary DeFi allocation to PENDLE totaling roughly $1.75 million.
• Additional positions added in LDO, ENA, and ETHFI.
• More than 60% of total assets now held in DeFi tokens and stablecoins.
• Reduced exposure to ETH despite longstanding involvement with Ethereum.

Mixed Reaction on X Follows Hayes’ Shift From Ethereum Toward DeFi

Reaction on X has been mixed, with some users supporting the move into DeFi and arguing that it aligns with the current market environment. One post suggested the decision was reasonable given delays related to Ethereum upgrades. Others warned that DeFi yields often involve higher risk. Some critics also suggested that Hayes may be acting on market information that is not widely available.

Ethereum’s price has struggled to regain the $3,000 level, weighing on market sentiment. Network data, however, continues to show resilience. Etherscan reported 2.2 million transactions processed in a single day this week, setting a new weekly record. Transaction fees remain far below their May 2022 highs, when costs exceeded $200 per transaction.

Lower fees previously encouraged users to migrate to layer-2 networks. Recent increases in mainnet activity may point to renewed interest in layer-1 usage. Developer activity also remains strong. Token Terminal data indicates that 8.7 million smart contracts were created during the fourth quarter, driven by real-world asset tokenization, stablecoins, and infrastructure development.

Ethereum continues to play a central role in the stablecoin market, hosting more than half of the $307 billion total supply. Researchers at RedStone have described the network as an institutional standard, citing its security and liquidity. Despite increased competition from Solana, Avalanche, and BNB Chain, Ethereum remains a key part of the broader digital asset ecosystem.