Investing In Crypto’s Next Wave: Arthur Hayes Highlights Stablecoins As Key Narrative At Hack Seasons Singapore
In Brief
At the Hack Seasons Conference in Singapore, Arthur Hayes highlighted stablecoins and DEXs as key drivers of crypto growth, while discussing alternative fundraising, market liquidity, and risk management for the next wave of capital formation.
At the start of October, Singapore hosted the Hack Seasons Conference, which brought together a global audience of technologists, investors, and innovators to examine the evolving landscape of Web3. One of the event’s most notable sessions was the fireside chat titled “From Liquidity to Perps: How Macro Flows, Stablecoins and DATs Are Rewiring Onchain Markets.” The discussion was moderated by Ciara Sun, Founder and Managing Partner of C²Ventures, and featured Arthur Hayes, Chief Investment Officer at Maelstrom.
The conversation opened with Arthur Hayes offering insights from his forthcoming essay titled “The Good, The Bad, and The Ugly.” He explained that the current market environment remains bullish, with many participants profiting from ongoing trends. Contrary to the widely held belief in a four-year cryptocurrency cycle, Arthur Hayes argued that monetary expansion will persist, suggesting that the market is now entering the middle phase of a broader bull run.
Ciara Sun noted Arthur Hayes’s frequent emphasis on the role of US dollar liquidity in shaping the cryptocurrency market and asked for his outlook on monetary policy over the next six to twelve months. The expert explained that based on statements from political figures, including Donald Trump and Treasury Secretary Scott Bessent, there appears to be a clear intention to increase money printing under the banner of “revitalizing American industry.” Whether through the Federal Reserve or the broader banking system, this approach would likely lead to an expansion of credit. Arthur Hayes added that as Donald Trump gains greater influence over monetary policy, this acceleration in US dollar creation would be highly beneficial for cryptocurrency markets.
The discussion then turned to stablecoins, which Ciara Sun described as one of the most important use cases in cryptocurrencies. Arthur Hayes shared his view that while stablecoins currently function as digital representations of the US dollar, their role in global payments continues to evolve. He observed that users in emerging markets increasingly favor dollar-pegged stablecoins such as Tether because they provide access to a less inflationary currency and to US-denominated financial instruments like debt and equities. In many countries, local payment systems already operate efficiently, yet consumers still choose stablecoins for their stability and global accessibility. Arthur Hayes predicted that the stablecoin sector will continue expanding, with the majority of new issuances remaining dollar-based and the leading issuers likely earning above-average profits.
Ciara Sun also mentioned that companies such as Visa and PayPal are experimenting with cryptocurrency payment solutions that could accelerate mainstream adoption. Arthur Hayes commented that large corporations tend to move slowly, making it difficult to forecast when such initiatives might meaningfully scale.
Perpetual DEX Wars And The Future Of Crypto Liquidity: Market Competition, Tokenomics, And Risks
The conversation then shifted to the rise of decentralized perpetual exchanges (DEXs), which have gained traction over the past year. Arthur Hayes noted that the concept itself is not new, referencing earlier platforms like dYdX, which pioneered permissionless trading and on-chain derivatives. However, he pointed out that dYdX’s token model failed to reward holders directly, as trading fees did not translate into tokenholder returns. In contrast, newer platforms such as Hyperliquid allocate the majority of their revenue—around 97%—toward token buybacks, aligning incentives between traders and the protocol. This approach has galvanized community support and intensified competition across the market. According to Arthur Hayes, this dynamic has triggered what he termed “perpetual DEX wars,” with major centralized exchanges (CEXs) now launching their own decentralized trading products. As a result, fees across the sector are likely to compress toward zero, forcing exchanges to rethink their business models to maintain profitability.
Arthur Hayes added that CEXs will continue to play a role, particularly for institutional participants such as pension funds and banks that are restricted from trading on decentralized platforms. However, for retail traders seeking high-leverage products with global accessibility, DEXs offer clear advantages. This, he explained, is why CEXs view decentralized perpetuals as a serious competitive threat to their retail business models—once traders migrate to on-chain alternatives, liquidity providers and market makers tend to follow, potentially leaving centralized venues with diminished activity.
The discussion also addressed the growing number of Digital Asset Tokenization (DAT) companies that aim to provide additional layers of market liquidity. Arthur Hayes expressed skepticism about the long-term viability of many such ventures, suggesting that only a few—such as MicroStrategy—are likely to endure, while most will struggle to attract meaningful trading volume. He further observed that many altcoins face similar challenges due to limited liquidity and the difficulty of scaling token offerings to sustainable levels.
Arthur Hayes concluded by identifying a key risk factor for the DAT sector: the structure and leverage of tokenized offerings. If issuers rely too heavily on leveraged products or complex financial terms, they may trigger cascading liquidations and forced unwinds during market stress. While such volatility could create opportunities for traders, he noted that it might also leave retail investors uncertain about the true value of the assets they hold.
Arthur Hayes On Investment Discipline And The Next Wave Of Capital Formation In Crypto
The conversation then turned to risk management, described as the foundation of the financial industry. Arthur Hayes outlined several strategies and hedging practices used within his fund, emphasizing the importance of maintaining discipline in position sizing. He explained that he never takes a position larger than what he is prepared to lose and that the majority of his portfolio is held in Bitcoin and Ethereum. Discussing early-stage projects, he noted that his fund maintains strict upper limits on investment amounts, regardless of how promising a project may appear.
The discussion then shifted toward identifying the most promising narratives for the next three to five years. The speaker pointed to stablecoins as the strongest growth opportunity, predicting that their total circulating supply could reach several trillion dollars. He expressed confidence that Ethena would emerge as the second-largest issuer behind Tether, potentially surpassing Circle. As millions of people begin holding stablecoins, he observed, demand to spend and utilize them will grow. In this context, he referenced EtherFi, a project enabling users to create self-custodial wallets and spend stablecoins anywhere Visa is accepted globally. Beyond spending, he noted that lending and trading stablecoins would become major markets, alongside ongoing competition in the perpetual DEX sector. Arthur Hayes characterized the stablecoin ecosystem as one of the most powerful emerging trends, further strengthened by positive developments in US policy.
Discussing Maelstrom’s investment focus, Arthur Hayes highlighted the firm’s interest in helping small and medium-sized businesses integrate stablecoin payments. Many such enterprises, he noted, still need to manage obligations such as taxes and insurance, yet lack the technical expertise to implement blockchain-based payment systems. Maelstrom is therefore backing companies that simplify stablecoin payment adoption for businesses—a sector he expects to see fast competition and growth.
The conversation then moved to the state of cryptocurrency venture capital. Ciara Sun observed that many traditional cryptocurrency VC firms appear to be struggling, citing data that suggests a decline in performance. Arthur Hayes explained that most VCs underperform against benchmark assets and that the conventional venture model is not well-suited to token investing. Large funds often find it difficult to deploy substantial capital efficiently because promising projects typically do not seek multimillion-dollar investments from a single source.
He further discussed alternative fundraising approaches for blockchain projects, noting that many now prefer token-based participation mechanisms, ICOs, or community distributions, rather than relying solely on venture capital.
Addressing token generation events (TGEs) and exchange listings, Arthur Hayes questioned the sustainability of the current listing-focused model. He argued that the strength of a project should not depend on being listed on a major exchange and that quality projects should prioritize building their ecosystems rather than seeking short-term price appreciation. Founders, he suggested, are increasingly realizing that exchange listings do not guarantee token price growth if the underlying tokenomics are weak. Instead, he advised that projects should reward active participants and contributors within their ecosystems rather than exchanges themselves.
The session concluded with a discussion on the importance of liquidity and market making for new projects. Arthur Hayes emphasized that well-structured market support is crucial for long-term stability and encouraged founders to focus on sustainable value creation and responsible ecosystem growth.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
