Ethereum News Update: Crypto's Battle for Dominance: Ethereum and Solana Emerge as Leading Survivors Over Competitors

Arthur Hayes: Only Ethereum and Solana Have Lasting Potential Among Layer-1 Blockchains

BitMEX co-founder Arthur Hayes has once again voiced his strong belief that Ethereum and Solana stand alone as the only layer-1 blockchains with enduring relevance. In a recent interview with Altcoin Daily on November 28, Hayes dismissed new entrants such as Monad, predicting their eventual downfall and labeling them as lacking substance.

Hayes attributes Ethereum’s staying power to its growing acceptance by major financial institutions. He pointed out that traditional finance has recognized the shortcomings of private blockchains and is now turning to public networks like Ethereum for Web3 integration. According to Hayes, Ethereum’s robust security, scalability, and established reputation have made it the preferred platform for banks and institutional investors. The surge in stablecoin adoption, he added, is further accelerating Ethereum’s role in the Web3 ecosystem.

Solana, which Hayes also supports, faces a different set of challenges. While he acknowledged the network’s impressive recovery and technical strengths, Hayes noted that the recent craze for meme coins on Solana has faded. He emphasized that Solana must innovate to sustain its growth, cautioning that it is unlikely to surpass Ethereum in the long run, even with recent institutional interest and ETF inflows. Hayes also observed that, apart from Ethereum and Solana, most other layer-1 blockchains lack significant user engagement or practical applications.

Hayes was particularly critical of Monad, a high-speed layer-1 project that launched in late November with a public sale and airdrop. Despite an initial 19% price jump for its MON token, Hayes dismissed it as a speculative venture with little real value, predicting a steep 99% drop. His skepticism reflects broader concerns in the market about projects with low circulating supply and excessive hype, as MON’s price later plunged by over 90%. Although Hayes admitted to buying MON tokens, he described any short-term profits as unsustainable and reiterated his commitment to holding Bitcoin, Ethereum, and Solana.

The institutional interest that Hayes highlights is becoming increasingly evident. Major players like Franklin Templeton and Grayscale have seen significant inflows into their Ethereum ETFs, while Solana-based ETFs are also attracting attention even during broader market downturns. Hayes cautioned, however, that most layer-1 projects will struggle to match the success of Ethereum and Solana, citing a lack of practical utility in many competing chains. This perspective aligns with a growing industry trend toward consolidation, with Ethereum’s Layer 2 solutions and Solana’s retail-driven activity reinforcing their dominance.

Reactions to Hayes’ remarks have been varied. While Ethereum and Solana continue to lead the market by capitalization, newer projects such as Monad are under increasing pressure to prove their worth. The current trajectory suggests that the cryptocurrency sector may soon see a narrowing of viable layer-1 options, with both institutional and retail interest focusing on a select few networks.