Arthur Hayes Sells $6M in ETH for DeFi Tokens

Blockchain analytics firm Lookonchain reported that Arthur Hayes, the co-founder of cryptocurrency exchange BitMEX, sold 1,871 ETH over a two-week period ending in late December. The capital from this sale, initially amounting to roughly $4.6 million, was swiftly redirected into a basket of DeFi-related tokens. His initial purchases included approximately $1.8 million worth of Pendle (PENDLE), $1.3 million in Lido DAO (LDO), $1.2 million in Ethena (ENA), and about $340,000 in Ether.fi (ETHFI). This move was not impulsive; Hayes had telegraphed the strategy earlier in the month on social media platform X, stating his portfolio was rotating out of ETH and into “high-quality DeFi names.”

Hayes’s rationale, as previously stated, hinges on macroeconomic conditions. He argued that these selected DeFi tokens could outperform Ethereum if fiat liquidity continues to loosen, suggesting a tactical play on monetary policy trends rather than a fundamental rejection of ETH. The rotation accelerated shortly after the initial report, with Lookonchain publishing a follow-up showing Hayes doubling down. He purchased an additional 4.86 million ENA (worth about $986,000) and 697,851 ETHFI (valued at nearly $485,000), bringing his total redeployed capital to well over $6 million. This two-stage deployment underscores a focused conviction in these specific assets.

This is not the first time Arthur Hayes has made large-scale, headline-grabbing portfolio adjustments, a history that adds context to the current community reaction. In November, he engaged in a similar selling event during a market downturn, disposing of ETH, ENA, and ETHFI. That activity itself followed a prior sale in August, after which he humorously pledged on social media never to take profits again. This pattern of active trading and profit-taking, even at perceived losses, paints a picture of a highly tactical investor rather than a passive holder, which informs the skeptical view some observers hold toward his latest moves.

The community response to Hayes’s latest pivot has been decidedly mixed, reflecting the cautious sentiment often surrounding influential traders’ actions. While some observers interpret the substantial capital allocation as a bullish signal for the selected DeFi sector, validating the underlying projects, others have urged extreme caution. A social media user named Junar responded to the news with a pointed warning: “the same guy sell his assets in loss so don’t fomo buy here.” This highlights the perennial debate in crypto markets about whether to follow “smart money” or view such moves as contrarian indicators, especially given the assets’ steep historical declines.

The price action of the involved tokens reveals why opinions remain sharply divided and underscores the risk inherent in Hayes’s strategy. According to data from CoinGecko, Ethereum (ETH) was trading around $3,000 at the time of reporting, exhibiting relative stability—roughly flat on the week and up close to 5% over 30 days, even as it remains about 11% lower than a year ago. In stark contrast, most of the DeFi tokens Hayes bought have shown short-term rebounds but remain deeply underwater on longer time horizons, representing a bet on a dramatic recovery.

Pendle (PENDLE) was near $2.00, up almost 14% on the week but down more than 60% year-on-year. Lido DAO’s LDO token was sitting around $0.60, with an 11% weekly gain that has done little to offset losses of nearly 68% across twelve months. The assets Hayes doubled down on show even steeper declines: ENA is trading close to $0.20 after slipping over 15% in 30 days and more than 75% since last year, while ETHFI is hovering near $0.70, still more than 90% below its early 2024 peak. This data paints a clear picture: Hayes is not buying tokens at all-time highs but is targeting assets he believes are oversold and poised for a comeback, betting millions that their recent rebounds are the start of a larger trend reversal.