Arthur Hayes Bets Big on Ethena: A $1M Move Before Crucial Hyperliquid Vote

Hayes Dives into Ethena Ahead of Hyperliquid's USDH Decision

Arthur Hayes, known for his influential role at crypto investment fund Maelstrom, has recently made a significant move, acquiring nearly $1 million worth of Ethena's ENA token. This strategic investment comes just before a pivotal vote on Hyperliquid that will determine the ticker for its USDH stablecoin.

The Whale's Wallet:

Data from Arkham Intelligence reveals that Hayes accumulated ENA tokens in multiple transactions over the past two days. These purchases include:

• 578,956 ENA tokens (approximately $473,000) on Wednesday.
• Two earlier buys totaling roughly 672,800 ENA (around $521,000).

This brings his total ENA holdings to almost $995,000 within a 48-hour period.

The USDH Battleground:

Ethena is a leading contender in the race to secure the USDH ticker for its stablecoin. Their proposal involves collateralizing USDH with their USDtb stablecoin, using BlackRock's BUIDL fund. Ethena has pledged a substantial 95% of revenue to Hyperliquid and offered to cover the costs of switching trading pairs from USDC.

Expert Opinions Diverge:

David Lawant from FalconX has lauded Ethena's proposal as a "strong bid." He highlights USDe's impressive $13 billion market cap and Ethena's successful processing of $23 billion in mints and redemptions without security breaches or downtime.

However, Kirby Ong of HypurrCollective suggests that Hayes' investment is more about personal positioning than a direct endorsement of Ethena for the USDH vote. Ong believes that validator alignments with their current stakers and prediction market sentiment will be the deciding factors.

Other Contenders:

Paxos, backed by PayPal, is also a strong contender, having revised its proposal to pledge a larger share of reserve yield to Hyperliquid's Assistance Fund. Native Markets currently leads with 90% odds according to Myriad Markets, proposing a GENIUS-compliant USDH managed through Bridge, with reserves overseen by BlackRock and Superstate.

Key Takeaways:

• Arthur Hayes has invested heavily in Ethena (ENA) before a key Hyperliquid vote.
• The vote will determine the ticker for Hyperliquid's USDH stablecoin.
• Ethena, Paxos, and Native Markets are the frontrunners, each with distinct proposals.
• Validator alignment and community sentiment will be crucial in determining the outcome.