Arthur Hayes, co-founder of BitMEX, highlighted the prerequisites for a successful altcoin season in a recent interview. He emphasized that decentralized applications (DeFi) must generate cash flow and reward token holders to thrive. Reflecting on past cycles, Hayes noted that many projects lacked clients, product-market fit, or cash flow, leading to failures. The 2021 DeFi Summer saw a surge in user attraction through token incentives, which eventually led to market crashes.
Hayes observed that the 2023-2024 period was marked by crypto venture capitalists inflating prices with high total value locked (TVL) and low float strategies, but users have since become more discerning. He believes a genuine altcoin season is emerging, characterized by projects with paying clients and profit-sharing with token holders, such as Hyperliquid. This shift indicates evolving investor expectations as the market for new issuances matures.
Arthur Hayes Predicts New Altcoin Season Driven by Profitable Projects
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