Arthur Hayes Bets on ‘Internet Status’ Over Tech in the Punks vs. ETH Trade This Cycle

• Hayes called this an “internet status game”, similar to wealthy individuals buying luxury cars and art to show off.
• CryptoPunks saw extraordinary activity this past weekend, with over $26 million in trades
• Back in May, NODE, a newly formed nonprofit backed by VC Ribbit Capital, purchased the CryptoPunks IP from Yuga Labs for around $20 million

Arthur Hayes, co-founder of BitMEX, posted on X that CryptoPunks will outperform Ethereum this cycle in US dollar terms, arguing it’s less about blockchain fundamentals and more about status signaling in the digital age. 

He framed it as an “internet status game,” similar to how wealthy individuals buy luxury cars and art to show off. Hayes believes investors will likely shift their ETH gains into rare, high-end NFTs like CryptoPunks.

CryptoPunks are one of the earliest and most iconic NFT collections, with a fixed supply of 10,000. As such, their deep-rooted cultural significance in Web3 offers scarcity and prestige.

Latest surge in trading volume supports the theory

Interestingly enough, Hayes’ prediction and theory could have merit considering the recent resurgence in on-chain NFT volume. For instance, CryptoPunks saw extraordinary activity this past weekend with over $26 million in trades. 

Approximately half of this volume occurred on their native marketplace, contributing to a remarkable 460% weekly surge in sales. The collection’s entry-level price now stands at around 48 ETH (roughly $177k).

While ETH remains fundamental as the base layer powering DeFi and NFTs, Hayes believes that Ethereum holders, after accumulating big gains, may redirect capital to flex assets like CryptoPunks, enabling them to outperform ETH in this cycle.

Recent whale activity with over $100 billion in large ETH transactions hints at institutional movement and potential ETH sell pressure, where some of this capital might be shifting into NFTs.

Node’s IP acquisition

Back in May, the Infinite Node Foundation (often called NODE), a newly formed nonprofit backed by VC Ribbit Capital, purchased the CryptoPunks IP from Yuga Labs for around $20 million.

NODE plans museum-grade preservation, community engagement, and expansion efforts, such as hosting a full collection exhibition in Palo Alto and running an Ethereum node for permanence.

The main point is to elevate CryptoPunks from digital collectibles into recognized cultural artifacts, integrating them into academia, galleries, and historical discourse.

It’s worth noting that, reportedly, Yuga Labs still retains 414 CryptoPunks, now valued at about $71 million.

All things considered, it does look like Hayes’s claim that CryptoPunks will outperform ETH isn’t just based on hype. Since Ethereum remains the ecosystem backbone, elite NFTs could emerge as highly sought-after trophy assets.