Former BitMEX CEO Arthur Hayes accumulated $995,000 worth of Ethena (ENA) tokens over 48 hours ahead of Hyperliquid’s crucial USDH stablecoin validator vote scheduled for September 14.
His aggressive buying spree included 578,956 ENA tokens worth $473,000 in the final purchase, bringing total holdings to 5.02 million tokens valued at $3.91 million.
Ethena Might Win the Hyperliquid Stablecoin War?
Hayes’ timing coincides with Ethena’s competitive bid to issue Hyperliquid’s native stablecoin using USDtb collateralized through BlackRock’s BUIDL fund.
The proposal promises 95% revenue sharing with Hyperliquid while covering costs for trading pair migrations from USDC to USDH.
Arkham Intelligence data reveals systematic accumulation patterns with multiple purchases from Binance, Wintermute, and Galaxy Digital over recent months.
Source: Arkham IntelligenceHayes previously deposited 7.764 million ENA tokens worth $4.62 million to Binance two months ago before beginning fresh accumulation cycles.
The purchases follow Hayes’ August prediction that ENA could achieve 51x returns by 2028 as stablecoin adoption reaches $10 trillion.
His analysis centers on Ethena’s “cash and carry” trading strategy, generating yields above Treasury rates through crypto derivatives.
Ethena currently operates the third-largest stablecoin with $13.5 billion in USDe deposits, positioning it behind only Tether and Circle.
Hayes projects Ethena could capture 25% market share as stablecoin infrastructure absorbs trillions in global deposits.
The validator vote now includes six major contenders: Native Markets with Stripe’s Bridge proposal, followed by Paxos, Sky Protocol, Frax Finance, Agora’s coalition backed by VanEck, with Ethena being the sixth.
Hayes’ 126x HYPE Prediction Drives Strategic Positioning
Hayes published his boldest crypto forecast in August, predicting Hyperliquid’s HYPE token could surge 126x by 2028 as Treasury Secretary Scott Bessent’s policies create the largest DeFi bull market in history.
The analysis assumes Hyperliquid becomes the dominant crypto trading venue, processing daily volumes comparable to Binance’s current $73 billion.
The former BitMEX executive believes stablecoin adoption will reach $10 trillion through forced migration of Eurodollar deposits and Global South banking holdings into U.S. Treasury-backed digital assets.
His “Buffalo Bill” Bessent thesis projects capturing $34 trillion in global deposits through weaponized stablecoin policies.
For ENA, Hayes models Ethena achieving $2.5 trillion in USDe supply as speculators pay above Treasury rates to borrow dollars for crypto leverage.
The protocol’s 20% fee structure on interest income creates sustainable revenue streams while providing higher yields than traditional banking alternatives.
Hayes’ personal positioning through ENA accumulation aligns with his institutional investment strategy through the Maelstrom fund, which has invested in Ethena.
The timing suggests confidence in Ethena’s USDH proposal outcome despite Native Markets’ dominant prediction market positioning.
Competitive USDH Race Intensifies Before Validator Decision
Paxos revised its proposal on Tuesday, announcing major PayPal integration, including USDH support in checkout infrastructure, Venmo compatibility, and HYPE token listing.
The partnership includes $20 million in ecosystem incentives and zero-cost on/off-ramps through PayPal’s payment rails.
The updated Paxos proposal commits all USDH revenue to Hyperliquid’s Assistance Fund until reaching $1 billion total value locked, with revenue sharing capped at 5% even beyond $5 billion TVL.
Similarly, Sky Protocol’s entry promised 4.85% yields and $25 million ecosystem development funding through its $8 billion infrastructure managing USDS and DAI stablecoins.
The proposal offers instant $2.2 billion USDC liquidity access and plans to relocate $250 million annual buyback systems from Uniswap to Hyperliquid.
As it stands now, Native Markets has the highest prediction market odds of winning despite coalition opposition led by Agora and VanEck, warning against Stripe’s Bridge conflicts of interest.
Source: PolymarketThe Stripe partnership proposal features a GENIUS-Act-compliant structure with BlackRock off-chain and Superstate on-chain reserve management.
Frax Finance pitched frxUSD backing through BlackRock’s BUIDL fund while Agora’s coalition pledged full net revenue sharing and claimed neutrality advantages.
Overall, each proposal targets different aspects of stablecoin infrastructure, from regulatory compliance to yield optimization.
However, Ethena’s BlackRock partnership provides institutional credibility with $23 billion cumulative mints and redemptions processed without security incidents.
Hyperliquid validators will begin voting September 14, with Foundation neutrality to be maintained throughout the selection process.
The outcome will determine USDH’s infrastructure backbone serving the platform’s $106 million monthly revenue and $383 billion trading volume.
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