BitMEX co-founder Arthur Hayes predicts Ethereum (ETH) price will reach $5,000 before Solana (SOL) hits $300

BitMEX co-founder Arthur Hayes has stirred up the crypto community with his latest prediction, stating that he believes Ethereum's price will reach $5,000

BitMEX co-founder Arthur Hayes has chimed in on the chances of Ethereum (ETH) reaching $5,000 ahead of Solana (SOL) hitting $300.

One crypto trader has agreed with Hayes’ prediction, highlighting the factors that might favor a stronger bullish outlook for Ethereum over Solana.

According to the trader, Ethereum benefits from significant institutional backing, potential support from upcoming exchange-traded fund (ETF) developments, and a clearer path in terms of regulation.

“Institutions are already heavily invested in ETH (through BlockRock [sic]’s BUIDL fund). Upcoming ETH ETF products will likely attract even more institutional capital.”

The trader also noted that the U.S. Securities and Exchange Commission (SEC) has already approved several Bitcoin (BTC) ETFs, setting the stage for the approval of crypto ETFs in the coming months.

“The SEC has already approved several BTC ETFs, setting the stage for crypto ETFs, which could further boost interest in ETH among traditional investors.”

However, the trader acknowledged that Solana’s speed and high throughput are key advantages for the network, which is focused on scalability.

“Solana’s blockchain is known for its speed in processing transactions, a critical factor in today’s fast-paced digital world.”

But the trader also noted some challenges for Solana, such as its history of network downtime incidents and the perceived influence of venture capital firms on the project.

“Solana has experienced several instances of network downtime, which can be a concern, especially during periods of high volatility in the crypto markets.”

Earlier this week, data from asset management giant BlackRock revealed that the company’s flagship BUIDL fund had seen its assets under management (AUM) increase to $1.145 billion by March 23.

This marks a significant milestone in the cryptocurrency’s institutional adoption, considering that the AUM stood at around $990 million just a week prior.

A majority of the capital in BlackRock’s BUIDL fund is held in Ethereum, with smaller portions allocated across other blockchain platforms like Avalanche (AVAX), Polygon (MATIC), Aptos (APT), Arbitrum (ARBX), and Optimism (OP).

Moreover, Ethereum continues to be the dominant base layer for the burgeoning sector of tokenized real-world assets (RWAs).