While many investors remain skeptical about Ethereum's growth compared to competitors like Solana or Bitcoin, Arthur Hayes – the founder of BitMEX and one of the most prominent figures in the crypto industry – has made a bold prediction: Ethereum could reach $5,000 this year, nearly double its current price.
ETH – "Hated" but could outperform?
At the Bitcoin 2025 event in Las Vegas, Hayes shared with #Decrypt :
"I think Ethereum could reach $4,000 to $5,000 this year. It is the most hated Layer-1, and usually, you should invest in the most hated assets when the cycle starts to reverse."
Currently, ETH is trading around $2,648. If it reaches the $5,000 mark as Hayes predicts, ETH would need to rise nearly 88% and break the historical peak of $4,878 from 2021.
What is driving Ethereum's bullish momentum?
According to investment firm Bernstein, two key factors are supporting Ethereum:
The return of stablecoins:
Ethereum currently accounts for up to51% of the total supply of issued stablecoins, indicating that this network remains the largest liquidity center in DeFi. This is attracting renewed interest from the market.Growth of Layer-2:
Layer-2 networks help scale Ethereum and drive usage demand$ETH for gas fees. For example, Robinhood recently acquired WonderFi – a platform with its own Layer-2 built on Ethereum. Analysts believe Robinhood could leverage Layer-2 to issue tokenized stocks, increasing the application and demand for ETH.
The market is gradually shifting positively
Notably, ETH has risen over 45% in the past month, thanks to the success of the Pectra upgrade and improved market sentiment.
Not just #ArthurHayes ; Standard Chartered – one of the major financial institutions – has also made an optimistic forecast:
ETH price target of $4,000 by 2025
Could even reach $7,500 by 2029
Options markets also reflect increased investor confidence in Ethereum's potential price increase in the near future.
Ethereum is reinventing itself
Ethereum's "disadvantage" compared to Layer-1 competitors has led many to criticize this ecosystem as "slow and rigid." However, internally, Ethereum is changing. Co-founder Vitalik Buterin has recently been reported to have "switched to a wartime footing" on social media, and the Ethereum Foundation is also restructuring its strategy and leadership to better respond to new market trends.
Impact on investors and the crypto market
If ETH reaches $5,000, it will be a historic milestone for the entire altcoin market and especially for the DeFi ecosystem. Layer-2 solutions, asset tokenization, and stablecoins will all be strongly driven.
For users on exchanges like Binance, the upward trend of ETH could open up many leverage trading opportunities, staking ETH, or investing in potential Layer-2 projects.
Risk warning
The cryptocurrency market is always highly volatile and not for all investors. Price predictions are for reference only and are not guaranteed. Please do thorough research and consider your risk tolerance before investing. #anhbacong