Hayes Sees $5,000 ETH Price Target as Institutional Demand Grows

Ethereum's price could nearly double to $5,000 within roughly a year as Robinhood's use of Ethereum for its blockchain makes the network easier for other large financial institutions to adopt, according to Arthur Hayes.

Hayes, chief investment officer at Maelstrom and co-founder of BitMEX, pointed to Robinhood's decision to use Ethereum as the security layer behind its blockchain as a potential catalyst for wider institutional use. 'Robinhood chose Ethereum as the security layer for its own blockchain,' Hayes said.

Relying on Ethereum gives other large financial companies a reference point when considering the network for their own blockchain infrastructure, Hayes argued. He expects this trend to gain traction and improve the narrative around Ethereum, leading Ether to reach $5,000 within a year.