BlockTempo Exclusive WebX 2025 | Exclusive Interview with Arthur Hayes: USDe will surpass USDC next year, ETH's rise and fall depends on this point

WebX 2025 will be held on the 25th of this month at the Prince Park Tower Hotel in Tokyo, Japan. Before the event starts, BlockTempo takes you to interview the heavyweight speaker Arthur Hayes, co-founder of BitMex. What are his views on the recent market, stablecoins, and Ethereum? (Background: Arthur Hayes' latest prediction: Bitcoin at 250,000, Ethereum at 10,000, by the end of the year) (Additional background: Arthur Hayes: Bitcoin and Ethereum have completed their bottom formation. Where will new liquidity come from? How to select assets at this stage?) The future of decentralized stablecoins: Next year, USDe will surpass USDC. BlockTempo Alex: Hello Arthur, let's start directly with stablecoins! You mentioned that many new stablecoin projects have "no real future" because they cannot be issued through major channels such as cryptocurrency exchanges, social media giants, or traditional banks. At the same time, you have shown confidence in new decentralized stablecoins, such as Ethena's USDe, which you believe could one day replace USDT to become the largest dollar stablecoin. How likely do you think the future of decentralized stablecoins is to materialize? Especially in a market currently dominated by giants like Tether and USDC, what key characteristics do new stablecoins need to stand out and achieve long-term success? Arthur Hayes: Regarding USDe, I believe Ethena will surpass Circle next year to become the second largest in the market. We have already seen the rapid growth of USDe's supply, which is increasing very quickly because it is different from other stablecoins. Ethena can actually lend money to crypto investors, which generates revenue. As more people understand stablecoins, users will want to earn more returns, and they will turn to Ethena and use it. I think what makes Ethena unique is that it occupies this specific market, and it is almost impossible for another issuer to replicate this model. The rise in ETH prices depends on how the relationship between Layer 2 and Layer 1 evolves. BlockTempo Alex: As one of the leaders in the cryptocurrency market, you have always maintained confidence in the future of Ethereum. Recently, you stated that you bought more ETH during the market pullback and expect ETH to reach between $10,000 and $20,000 in this bull market. You also mentioned that ETH occupies too large a proportion of your investment portfolio. Some people believe that "Ethereum will ultimately become the foundational layer of the global financial system," with all financial activities built on top of Ethereum. From your perspective, what role will Ethereum play in the future global finance? Do you think it really has the potential to become the foundation of the global financial system? What challenges or conditions does the Ethereum ecosystem need to overcome to achieve this goal? Arthur Hayes: Of course, I think Ethereum, as a smart contract layer, is obviously the most dominant, with the most developers and the largest market share, and this advantage will continue. But... whether this will translate into an increase in ETH prices very much depends on how the relationship between Layer 2 and Layer 1 evolves. I am not sure how things will develop in the future and how transaction fees and sequencer revenues will be allocated between the security layer (Layer 1) and application chains (Layer 2). This is a question that remains to be answered. However, if every financial institution has its own application chain, but ultimately relies on Ethereum for security, then how should Ethereum share in these economic activities? This is the key question of whether it can truly become the underlying layer supporting all Layer 2. But whether this can translate into returns for ETH holders is still a question. Further reading: Arthur Hayes latest interview: Autumn pullback, ETH long-term looks at $10,000 to $20,000. The ultimate answer to the drivers of the cryptocurrency market is still: interest rate cuts and money printing. BlockTempo Alex: In your recent article, you boldly predicted that Bitcoin could rise to $250,000 by the end of 2025, believing the main reason is that the U.S. government may force the Fed to print money again to cope with fiscal pressure. You further stated: "For my investment portfolio, what matters is not the strength of the United States but how much fiat currency exists in the system," highlighting the importance of liquidity and monetary policy. Given the current macro trends (such as high inflation, massive debt, and potential money printing) and global political risks (such as trade conflicts and regulatory changes), what factors do you think will most profoundly affect the future of the cryptocurrency market? Arthur Hayes: The key factors influencing the future of the cryptocurrency market, I believe, ultimately depend on the asset base and money printing. How many units of dollars do you think are circulating globally now? How many will there be in the future? What does the market believe there will be in the future? As we recently saw in Powell's speech at the Jackson Hole conference, the Fed has accepted further monetary easing to support Trump's investments and advance his policies. This means that the U.S. monetary base will continue to expand, and other countries will also accelerate their responses. I think this process will continue to accelerate. So that's why I believe that only interest rate cuts and money printing are key. Further reading: Fed's Powell shifts dovish, "September rate cut probability surges," Bitcoin breaks through $117,000, Ethereum approaches historical highs. Related reports: Kanye's $YZY drops below $1.2 million! Arthur Hayes angrily criticizes trash coins. Is Arthur Hayes' dual operation of shouting and dumping a common tactic? Arthur Hayes pessimistic about Trump establishing Bitcoin and altcoin reserves: The U.S. government has no money and is just talking empty. "BlockTempo Exclusive WebX 2025 | Exclusive Interview with Arthur Hayes: USDe will surpass USDC next year, ETH's rise and fall depends on this point" was first published on BlockTempo (BlockTempo - the most influential blockchain news media).