Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Former BitMEX CEO Arthur Hayes has published his boldest crypto prediction yet, forecasting that Hyperliquid’s HYPE token could surge 126x from current levels by 2028 as stablecoin adoption reaches $10 trillion and transforms decentralized trading.
Hayes believes Treasury Secretary Scott Bessent’s policies could create the largest DeFi bull market in history.
“Buffalo Bill” Bessent’s Strategy Targets $34 Trillion Global Deposit Seizure
Hayes’ thesis centers on his belief that the Trump administration will weaponize stablecoins to capture $34 trillion in Eurodollar deposits and Global South bank holdings, forcing these funds into U.S. Treasury bills through compliant stablecoin issuers.
The former crypto executive argues this represents a “once in a century change of the global monetary architecture” that will supercharge decentralized finance applications.
The prediction comes as Hayes maintains substantial positions through his investment fund, Maelstrom, in Ethena (ENA), also known as Ether.fi (ETHFI), and Hyperliquid (HYPE).
His analysis projects ENA could gain 51x and ETHFI could achieve 34x returns by 2028 based on massive stablecoin adoption driving DeFi usage.
Hayes nicknamed Treasury Secretary Scott Bessent “Buffalo Bill” for his anticipated dismantling of the Eurodollar banking system, comparing the strategy to taking control of foreign non-dollar deposits.
The analysis suggests that Meta’s WhatsApp and other U.S. tech platforms will serve as distribution channels for dollar-pegged stablecoins, reaching billions of users globally, thereby bypassing local banking systems and regulatory restrictions.
Stablecoin Infrastructure to Absorb $34 Trillion in Global Deposits
Hayes outlines how Bessent could redirect $10-13 trillion in Eurodollar deposits by threatening to withdraw Federal Reserve support for foreign banks during the next financial crisis.
This policy shift would force Eurodollar depositors to comply with stablecoin issuers like Tether, which invest exclusively in U.S. bank deposits and Treasury bills.
The strategy extends to capturing $21 trillion in Global South retail deposits through U.S. social media platforms equipped with crypto wallets.
Hayes envisions WhatsApp providing seamless stablecoin payment functionality to users in countries like the Philippines, effectively creating digital dollar bank accounts for billions while bypassing local banking regulations.
Central banks in emerging markets would lose monetary control as citizens adopt dollar-pegged stablecoins for daily transactions.
Hayes argues local governments lack effective responses beyond internet shutdowns, while the Trump administration could wield sanctions against officials who resist stablecoin proliferation by threatening their offshore wealth holdings.
The forced adoption would create price-insensitive demand for Treasury bills, allowing Bessent to offer yields lower than those of Fed Funds rates while maintaining profitability for stablecoin issuers.
This mechanism could give the Treasury control over short-term interest rates regardless of Federal Reserve policy decisions.
European deposits face similar pressure as Hayes predicts the euro’s collapse due to Germany-first and France-first policies splintering the currency union. Adding European bank deposits of $16.74 trillion to the target market creates a total addressable market of $34 trillion for stablecoin conversion.
JPMorgan research confirms accelerating de-dollarization trends, with central bank USD reserves hitting two-decade lows while gold purchases surge among emerging market institutions.
Foreign ownership of U.S. Treasury markets has also declined from over 50% during the 2008 financial crisis to 30% currently, creating financing pressures that stablecoins could alleviate.
DeFi Protocols Positioned for Explosive Growth From Institutional Flow
Hyperliquid emerges as Hayes’ highest conviction play with 126x return potential, based on his prediction that the decentralized exchange will become the largest crypto trading venue of any type by 2028.
The platform currently holds a 67% DEX market share and is rapidly gaining ground against centralized competitors, such as Binance.
Hayes models Hyperliquid reaching daily trading volumes comparable to Binance’s current $73 billion as stablecoin supply reaches $10 trillion.
The exchange’s permissionless infrastructure through HIP-3 enables any application to integrate liquid derivatives markets, positioning it as the “decentralized Binance” for the stablecoin era.
Ethena’s USDe stablecoin targets the lending market by offering higher yields than Treasury rates through cash-and-carry trading strategies that Hayes helped pioneer at BitMEX.
The protocol has grown to become the third-largest stablecoin, with $13.5 billion in deposits, positioning it to capture a 25% market share, trailing only Tether.
Similarly, Hayes compares Ether.Fi Cash offers spending infrastructure through Visa-powered stablecoin debit cards, with a revenue model similar to JPMorgan’s fee-to-deposit ratio of 1.78%.
He projected that the adoption, which allows users in the Global South to spend digital dollars anywhere Visa is accepted, will drive significant returns.
Stablecoin infrastructure is already transforming traditional finance, with monthly settlement volumes reaching $1.39 trillion in the first half of 2025.
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