Bankless co-founder David Hoffman said he sold his ETH because he no longer believes Ethereum’s success will fully translate into higher ETH prices.
Hoffman, one of Ethereum’s media representatives, he said The idea of ”ETH is money” has not collapsed. Instead, he argued that it had already played. “The ETH and Money thesis did not fail… it played out,” he wrote.
His post is like ETH trades near weak support levels about $2,050 to $2,100. The stock has been struggling to recover from resistance above $2,300, as ETFs move and demand for the chain remains mixed.
Hoffman Says Ethereum Network May Succeed While ETH Surges
Hoffman made a distinction between them Ethereum online and ETH assets.
“I am massively bullish on Ethereum,” he wrote, adding that he expects the network to do well. But he said that only a “small amount” of this success could be reflected in ETH.
That is the basis of his argument. Ethereum can continue to dominate stablecoins, tokenization, DeFi, and Layer 2 services. But ETH may not capture enough value from that growth to warrant a significant return on investment.
The Cost Drawing Problem
Hoffman denied that Ethereum is structured returning value to its environment.
He described Ethereum as a “giver, not a receiver,” saying that it provides a secure blockspace for L2s, tokenizes the real economy, and supports DeFi without taking too much money.
That view is similar to the current market debate. Ethereum usage remains strong in all areas such as stablecoins and rollups. But L2s and software are now taking on many of the issues that fueled the old burning issue.
As a result, Ethereum can grow as an infrastructure while ETH fails to keep up.
ETH Faces Weak Technical Challenge
Time is also important. ETH is trading near a major support level after failing to build above $2,200. Analysts warned that a break below current levels could weaken the chart.
At the same time, the interests of the organizations remain inconsistent. Ethereum ETFs have not provided the necessary liquidity to dampen market confidence.
Signal Leaks From an Ethereum Insider
Hoffman said he will not be at ETH. He said he wants to allocate money somewhere because he doesn’t expect ETH to be “adjusted” high or low.
However, the migration is heavy.
Over the years, Bankless helped popularize ETH as an internet currency. Hoffman’s exit shows that even some Ethereum believers are now questioning whether ETH is still the best financial option for Ethereum’s future.
A note Why an Unbanked Founder Sold His Entire Ethereum Portfolio appeared for the first time BeInCrypto.
