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Arthur Hayes: Ethereum has significant room for a catch-up rally; once it breaks through $3,000, the next target is $5,000.

46 minutes ago

Arthur Hayes told Laura Shin during a podcast appearance that ETH is one of the most despised large-cap altcoins in the market. As the second-largest cryptocurrency by market capitalization, it has yet to break through its 2021 all-time high. From a risk-reward standpoint, at least in how he manages portfolios at Maelstrom, ETH is currently his largest position outside of Bitcoin. “I’m not particularly worried about waking up one day to find ETH has gone to zero. Of course, that scenario could occur, but that risk is far lower compared to other cryptocurrencies, so I’m very comfortable allocating a large position to this trade. Since it has not rallied much in this cycle, I believe it has significant catch-up upside. Once it starts moving higher, the reflexive momentum train will kick in. There are so many people who want to go long ETH for various reasons, and there were very valid justifications for why they didn’t do so in past years,” Hayes noted. He added: “Once we break through the $3,000 level, I think you will truly see ETH’s rally get underway, and it could quickly surpass $5,000. My year-end target is within reach.”

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Citadel Founder: Has Eliminated Over 80% of Risks from Original Situational Awareness Portfolio

Citadel founder and CEO Ken Griffin has issued an investor letter to investors regarding the firm’s AI fund Situational Awareness, noting that he has eliminated more than 80% of the fund’s original portfolio risk via nearly 100 block trades. The fund has a total market value exceeding $4 billion, and Griffin has rapidly exited most of its vega risk. (CNBC)

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Tom Lee: BitMine stock has an 80% correlation with ETH, and ETH will outperform BTC in this cycle.

BitMine Chairman Tom Lee has published a post listing 17 large-cap stocks (each with a market capitalization exceeding $2 billion) that exhibit high correlation to cryptocurrencies, for stock investors seeking crypto exposure. Among these, BMNR has the highest correlation with Ethereum (ETH) at 80%, followed by COIN at 74%; MicroStrategy (MSTR) shows the highest correlation with Bitcoin (BTC) at 78%, with COIN ranking second at 74%. Lee stated that he expects ETH to outperform BTC in the current cycle, driven by tokenization and AI applications, noting that this rationale is far more significant than the factors that fueled ETH’s outperformance in previous cycles.

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A crypto whale holding BTC and ETH worth $80 million has generated an unrealized profit of $21.1 million over a month and a half.

According to monitoring by crypto analytics platform Yu Jing, a large whale entered long positions worth $80 million in Bitcoin (BTC) and Ethereum (ETH) on July 6, when MicroStrategy’s announcement of selling its crypto holdings sparked a market sell-off, and has held the positions ever since. The BTC long position was opened at $62,353, while the ETH long position was opened at $1,762. Following the market rebound over the past two days, the long positions established by this whale a month and a half ago now hold an unrealized profit of $21.1 million.

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Hyperliquid Policy Center: Perpetual Contracts Are an Effective Supplement to Traditional Futures

The Hyperliquid Policy Center released a new research report stating that perpetual contracts act as an effective complement to traditional delivery futures. By analyzing weekend trading data of 205 Bitcoin and 19 on-chain crude oil contracts, the report found that perpetual contracts eliminate forced rollover costs, lower the crude oil trading threshold to 1/100 of that of traditional WTI, and deliver accurate price discovery functions during non-trading hours of traditional markets. The policy center also cited data to prove that the growth of the perpetual market has not caused statistically significant harm to existing benchmark markets.

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Citadel’s founder has issued an open letter, stating that over 80% of the risks of its original Situational Awareness portfolio have been eliminated.

Citadel founder and CEO Ken Griffin has issued an investor letter to investors regarding the firm’s AI fund Situational Awareness, stating that he has eliminated more than 80% of the original portfolio risk for Situational Awareness through nearly 100 block trades, with the portfolio’s total market value exceeding $40 billion, and has rapidly exited most vega risk. (CNBC)

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Goes down in history: The August 19 rally is the only short squeeze among crypto’s top 10 largest liquidations ever.

According to Coinglass data, the August 19 rally triggered a total of $2.739 billion in short-position liquidations and $248 million in long-position liquidations. The single-day total liquidation amount ranks eighth in crypto history, while its single-day short-position liquidation volume is the highest on record. Notably, among the top 10 and even top 30 single-day liquidation events in crypto history, August 19 is the only one dominated by short-position liquidations—all others were long-position liquidations caused by crypto price declines.

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