Arthur Hayes believes the next generation of altcoins won’t just exist for speculation – they’ll have to serve real users. As projects like Pepenode emerge with innovative, player-driven ecosystems, the industry may finally be turning its memes into mechanisms that work.

In a candid October 10 interview with When Shift Happens, Arthur Hayes, the co-founder of BitMEX and one of crypto’s most influential voices, unpacked what he calls the “maturity cycle” of the altcoin market.

Reflecting on the last several years of boom and bust, Hayes noted that earlier altcoin seasons were built almost entirely on hype – especially during 2021’s infamous “DeFi Summer.” Projects raised millions with promises of decentralisation, high yields and financial revolution, yet most failed to sustain user interest or build viable businesses.

“They had no real clients, no product-market fit and no cash flow,” Hayes explained.

By contrast, he said, the next altcoin season will be shaped by protocols that actually earn revenue, share it with token holders and deliver tangible services. In other words, the era of hollow tokenomics is ending.

Learning From DeFi’s Missteps

The collapse of short-lived DeFi projects in 2023 and 2024 taught traders that total value locked (TVL) doesn’t equal sustainability. Capital rotated between protocols offering short-term incentives, but few had lasting appeal. According to DeFiLlama data, the industry’s TVL hovered around $90 billion in early 2025 – impressive in scale but hollow in utility.

Hayes said this shift in investor behavior is healthy. As the speculative fog lifts, users now demand real functionality and returns linked to genuine economic activity. He pointed to emerging projects like Hyperliquid, a decentralised derivatives platform that shares trading revenue with token holders, as early signs of this more mature model.

This evolution – where projects mimic real-world businesses with recurring income, customer retention and transparent governance – could set the stage for an altcoin season that finally rewards fundamentals, not just memes.

Altcoins Built for Users

Hayes’ argument underscores a growing truth in crypto: the projects that endure are those that treat users like customers, not exit liquidity. As he put it, “Decentralised apps are finally learning to operate like real companies.”

That shift is visible in the rise of sustainable DeFi models, where token holders participate in profit-sharing, voting and system governance. These are not speculative pumps but mechanisms that incentivize long-term engagement.

In this new landscape, the question isn’t just which altcoins will moon, but which will matter.

And one of the projects embodying this emerging ethos is Pepenode, a meme-driven yet functional crypto game turning player activity into real on-chain value.

Pepenode: Where Play Meets Productivity

While Hayes didn’t mention it by name, Pepenode ($PEPENODE) aligns closely with the kind of project he describes – one that combines community culture with tangible utility.

Pepenode’s premise is simple but revolutionary: it’s a mine-to-earn GameFi ecosystem where players earn rewards not by speculation, but through strategy. Users purchase and upgrade virtual “miner nodes” that generate power within the game, using PEPENODE tokens as the in-game currency.

The more optimised the setup, the higher the rewards – creating a dynamic balance between efficiency, investment and engagement. Unlike traditional mining, it’s not about expensive rigs or massive electricity costs. All you need is a wallet and an internet connection.

It’s a concept that flips crypto mining into a game – accessible, sustainable and community-driven.

How Pepenode Reflects Hayes’ Thesis on the Next Altcoin Era

Arthur Hayes’ vision of a user-focused altcoin market hinges on one idea: projects must serve their communities, not extract from them. Pepenode achieves this by creating a self-contained, circular economy.

Every time players use PEPENODE tokens to buy or upgrade nodes, 70% of those tokens are burned, creating a deflationary mechanism that strengthens long-term value. At the same time, the platform continuously reinvests in engagement, adding new meme-coin integrations like PEPE and FARTCOIN and potentially DOGE or SHIB in future updates.

This sustainable design ensures that growth doesn’t depend on speculative inflows alone. Instead, value generation becomes a function of user activity, mirroring Hayes’ argument that altcoins must operate like functioning businesses with recurring revenue and user retention.

It’s a model that merges the entertainment of meme culture with the mechanics of DeFi and it may mark the next phase in crypto’s evolution.

Altcoins Are Growing Up and Pepenode Is the Proof

For Hayes, the difference between this cycle and previous ones is accountability. “The next generation of altcoins,” he said, “will be the ones that earn, pay and share.”

That ethos is evident in Pepenode’s transparent presale, currently offering tokens at a discounted rate of $0.0011363, with over $2 million raised so far. The token’s deflationary burn system, coupled with an in-game staking APY of 628%, encourages participation while reducing speculative volatility.

This blend of gamified design and real incentive mechanics represents a new kind of altcoin utility – one that could stand the test of time rather than fading with the next meme trend.

If DeFi 1.0 was about experimentation, DeFi 2.0 was about optimisation, then DeFi 3.0, as Hayes predicts, will be about integration – where projects like Pepenode blend entertainment, efficiency and economic sustainability.

Risks and Realities: Not Every Project Will Survive the Shift

Hayes warned that even as altcoins mature, risk won’t disappear. Market volatility, token concentration and liquidity traps remain persistent threats. Many projects will claim utility but fail to deliver genuine use cases or sustainable models.

Pepenode’s success, like any decentralised project, depends on execution. Long-term viability will hinge on its ability to maintain user engagement, expand partnerships and keep burns consistent with growth.

Still, its design – linking token utility directly to user participation – puts it in a stronger position than most.

What Comes After the Meme Era

Arthur Hayes’ message is clear: the speculative era of altcoins is fading, replaced by a model where profit-sharing, participation and purpose determine staying power.

Projects like Pepenode illustrate how this transition is already underway – transforming memes into mechanisms and hype into habit. In that sense, Pepenode isn’t just a game – it’s a case study in what the next altcoin cycle might look like: creative, rewarding and community-aligned.

Pepenode and the Hayes Thesis in Action

Arthur Hayes envisions a future where altcoins evolve into user-owned platforms – systems that give back instead of taking. Pepenode exemplifies that shift, combining meme culture, DeFi principles and gamified economics into one coherent model.

JOIN THE PEPENODE PRESALE NOW – EXPERIENCE THE FUTURE OF USER-DRIVEN ALTCOINS

It’s not just entertainment; it’s engagement that earns. As Hayes predicted, that’s exactly what the next great altcoin era will be built on.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry high risks, including loss of capital. Readers should conduct independent research or consult a licensed advisor before investing.