Arthur Hayes, the co-founder of the now-defunct cryptocurrency derivatives exchange BitMEX, is not afraid to make a big prediction. In fact, he thinks CryptoPunks will do better than Ethereum (ETH) in U.S. dollar terms this bull cycle. When Hayes shared this prediction on X on July 2, 2025, it sent shockwaves throughout the crypto industry.
Moreover, Hayes makes the case that NFTs serve as “digital trophies.” They entice investors who end up dumping core assets such as ETH to fund their acquisitions. He suggests that as Ethereum holders accumulate profits, they are increasingly redirecting capital into NFTs like CryptoPunks to signal wealth and influence in digital spaces.
The floor price for CryptoPunks has shot up to nearly 48 ETH. That’s over $177k each! This creation frenzy represents an impressive 460% weekly increase in their sales volume, highlighting the increasing popularity of these digital collectibles.
Hayes' prediction offers a contrasting perspective to traditional analyses that emphasize Ethereum's technical advancements as primary drivers of its value. In the last few days alone, ETH has experienced some extreme market volatility, causing an astounding $600 million in crypto liquidations. At the same time, Hayes argues for NFTs’ cultural and symbolic importance.
In May 2025, the Infinite Node Foundation, supported by Ribbit Capital, purchased the legal intellectual property rights to CryptoPunks for $20 million. This deal serves as an example of increasing institutional excitement about the NFT space. Popular NFT projects such as CryptoPunks have become the equivalent of status symbols within the broader crypto ecosystem.
Aside from the operation behind the FTX collapse, this one is pretty big, too. To be fair, some of his previous predictions on Bitcoin’s future price have come true. Other times he has missed the target by a wide margin.
Yet the market has responded in whipsaw fashion to Hayes’ prediction. Some investors understandably view NFTs as the new expensive status symbols and are buying into his bullish outlook. But others are yet convinced, still arguing that Ethereum’s strong fundamentals and exciting developments still to come mean Ethereum is destined to stay on top.
