Arthur Hayes predicts that stablecoins will attract $34 trillion in funds on-chain! He points out that Ether.fi, Ethena, and Hyperliquid may become the biggest winners.

Cryptocurrency industry executive Arthur Hayes' latest blog post presents an astonishing prediction: dollar stablecoins will absorb $34 trillion in traditional funds flowing on-chain, becoming a new hub for global capital movement. He is particularly optimistic about the three DeFi protocols Ether. fi, Ethena, and Hyperliquid, predicting their token prices could achieve a big pump of 34 to 126 times. This article provides an in-depth analysis of Hayes' underlying logic, stablecoin regulation, and technical prerequisites, and assesses the feasibility of the trillion-dollar market in conjunction with predictions from institutions like Coinbase.

Hayes Three Kings Protocol: An In-Depth Analysis of Yield Strategies and Price Predictions

According to Hayes' analysis, non-US banks may lose the implicit guarantees of the US Treasury, which will force global deposits to shift to on-chain dollar stablecoins:

-Ether. fi: Capturing user demand with debit card products, the Token $ETHFI is expected to have a 34x rise.

-Ethena: The explosive demand for the yield-generating stablecoin USDe will drive the Token $ENA to rise 51 times.

-Hyperliquid: The surge in decentralized derivatives trading volume may enable the Token $HYPE to achieve a 126-fold rise.

The stablecoin market size is exploding: it may reach 1.2 trillion USD by 2028.

The current $280 billion stablecoin market is accelerating its expansion, with several institutions providing optimistic forecasts:

-Coinbase: The stablecoin market size is expected to reach $1.2 trillion by 2028 (a 330% growth over three years)

-Keyrock & Bitso: By 2030, stablecoins will account for 12% of the global cross-border payment share (up from just 3% of the $195 billion remittance market last year)

Industry giants are actively laying out exclusive blockchains to capture transaction fees. Ben Reynolds, Managing Director of BitGo, pointed out: "Issuers building their own chains can better control settlement and compliance processes."

Prerequisites for the realization of prophecy: breakthroughs in both regulation and technology

Hayes's trillion-dollar capital migration prophecy relies on two core conditions:

1. Regulatory Breakthrough: Global South countries need to maintain loose capital controls and allow for stablecoin payment integration.

2. Technical Integration: Technology platforms need to integrate stablecoin payment channels on a large scale. Currently, these conditions still have uncertainties, but the demand for USD stablecoins in emerging markets is indeed continuing to grow.

Analysis of the Synergistic Effects between Bitcoin and Stablecoins

The expansion of the stablecoin market will directly benefit the Bitcoin ecosystem:

1. A large number of fiat currency channel entrances bring incremental funds to the cryptocurrency market.

2. On-chain US dollar liquidity improvement can reduce Bitcoin trading friction.

3. The maturity of institutional-level stablecoin infrastructure will strengthen Bitcoin's position as a reserve asset.

Risk Warning: Overly Optimistic or Trend Prophet?

Be cautious of Hayes's stance as a relevant project investor, as the realization of his prophecy requires:

• A major shift in U.S. banking regulatory policy

• The stablecoin technology infrastructure has reached the reliability of traditional finance.

• The depreciation of fiat currencies in emerging markets continues to drive demand for dollarization.

Conclusion

Although Hayes' prediction of a $34 trillion migration seems radical, stablecoins have indeed entered a big pump growth channel as a bridge connecting traditional finance and the encryption world. Investors are advised to focus on DeFi protocols with real yield capabilities and compliant stablecoin issuers, while closely tracking the progress of the U.S. Congress's stablecoin legislation in September, as this bill could become a catalyst for the next market rally.