Ethereum trades near $3,080 as Arthur Hayes releases his forecast for the asset’s future. The BitMex founder predicts ETH could reach $20,000 by the next US presidential election.
Arthur Hayes: Except for Ethereum and Solana, almost all other L1s will go to zero
On November 29, on Altcoin Daily, Arthur Hayes said that, aside from Ethereum and Solana, almost all other L1s will go to zero. As major banks move into crypto and Web3, he expects them to build… pic.twitter.com/p8ssUer1cu
— Wu Blockchain (@WuBlockchain) December 11, 2025
Hayes says 50 ETH would be enough to reach a seven-figure portfolio at that price level. His prediction comes as Ethereum fluctuates between $3,051 and $3,272 this week.
The forecast aligns with current accumulation patterns. BitMine bought 33,504 ETH worth $112 million this week. Earlier in December, the firm purchased 138,452 ETH for approximately $435 million. BitMine now holds roughly 3.86 million ETH.
Tom Lee(@fundstrat)'s #Bitmine just bought another 14,959 $ETH($46M).https://t.co/kmkjKDhbPd pic.twitter.com/KcTb5salWV
— Lookonchain (@lookonchain) December 13, 2025
Hayes believes traditional institutions will adopt Ethereum as their primary settlement layer. He says banks finally understand they need public blockchains after years of failed private blockchain experiments.
“These organizations finally understand that you cannot have a private blockchain; you must use a public blockchain for security and real usage,” Hayes stated.
The shift relates to stablecoin growth, which has forced banks to recognize the value of on-chain settlement. Hayes argues Ethereum offers the security, liquidity, and developer depth that institutions require.
Hayes acknowledges Ethereum lacks privacy features that large institutions need. He calls this “the biggest thing Ethereum doesn’t have yet.” However, he expects Vitalik Buterin’s roadmap to address this gap.
Despite privacy limitations, Hayes says institutional adoption will continue. Enterprises will deploy privacy-enabled Layer 2 networks while using Ethereum for settlement.
He describes Ethereum L1 as the “security substrate” regardless of where activity occurs. This includes L2s like Arbitrum and Optimism.
Current data supports the institutional narrative. Exchange balances sit at multi-year lows. Whales accumulated over 900,000 ETH in recent weeks according to Santiment data. Ethereum treasuries hold nearly 5% of ETH supply.
Hayes sees only two long-term winners in the Layer 1 space. He places Ethereum first with Solana in second position.
He credits Solana’s rise from $7 to $300 to meme coin activity in 2023 and 2024. However, Hayes says Solana “needs a new trick” to outperform Ethereum again.
Hayes dismisses most other Layer 1 blockchains as structurally weak. He calls high-FDV chains like Monad over-inflated projects likely to collapse after initial pumps.
Ethereum currently faces immediate price action between key levels. The $3,200 mark serves as resistance. Breaking above this level could trigger movement toward $3,400.
If this is a flag, Ethereum $ETH could be heading toward $2,400 next. pic.twitter.com/a0RuQLRLF9
— Ali (@alicharts) December 12, 2025
A drop below $3,000 could push ETH toward $2,800. The Federal Reserve’s recent quarter-point rate cut initially lifted prices. Cautious guidance about future policy reversed that optimism.
BlackRock filed for an iShares Staked Ethereum Trust ETF. Approval could attract new institutional funds and strengthen confidence in ETH. The filing represents a step toward mainstream institutional staking.
Hayes says if Ethereum fails to meet expectations, it will be due to narrative breakdown. Slowing stablecoin usage or institutional retreat from on-chain trading could favor Bitcoin instead.
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