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BitMEX founder Arthur Hayes has made a notable choice, expressing his preference for Solana (SOL) over Ethereum (ETH) as the U.S. elections approach. Hayes regards Solana as a “high-beta Bitcoin,” meaning it could outperform during bullish phases due to its strong correlation with Bitcoin and higher liquidity. He also sees Solana as a short-term tool for fast transactions, an advantage he believes may help it outperform Ethereum.
Solana’s Appeal During Election Season
In a recent Unchained podcast episode, Hayes shared his view that Solana could stand out among altcoins in the near term and even surpass what he calls the “old and boring” Ethereum. Solana’s high liquidity and responsiveness to market shifts could make it a strong performer alongside Bitcoin during an uptrend, according to Hayes. While he isn’t selling his Ethereum holdings, Hayes sees Solana as a more effective short-term investment in the current market climate, especially with potential volatility in the upcoming U.S. election period.
Resilience After FTX Collapse and Recent Growth
Hayes highlighted Solana’s resilience, noting its impressive rebound from $7 to over $180 following the collapse of FTX. This recovery, he believes, underscores Solana’s durability and appeal as a liquid and reliable choice in the crypto market. Solana is currently trading at $168.41, up 17% over the past month, whereas Ethereum remains relatively stable around $2,508.72.
The Influence of Fed Policy on Long-Term Crypto Markets
While Hayes expects the U.S. elections to have some short-term impact on digital asset markets, he believes that a long-term bull market will hinge on changes in the Federal Reserve’s monetary policy. In his view, any potential shift by the Fed could be the most significant factor influencing crypto market performance over time.
For investors with a high-risk appetite, Hayes’s endorsement suggests that Solana offers a more dynamic option compared to Ethereum, particularly in a volatile market environment.
