Why Bankless Co-Founder Sold His Entire Ethereum Portfolio
Bankless co-founder David Hoffman mentioned he offered his ETH as a result of he now not believes Ethereum’s success will absolutely translate into greater ETH costs.
Hoffman, one among Ethereum’s most seen media advocates, said the “ETH is cash” thesis didn’t collapse. Instead, he argued that it already performed out. “The ETH is Money thesis didn’t fail… it performed out,” he wrote.
His publish lands as ETH trades near a fragile support zone round $2,050 to $2,100. The asset has struggled to regain stronger resistance above $2,300, whereas ETF flows and on-chain demand stay blended.
Hoffman Says Ethereum Network Can Win While ETH Lags
Hoffman made a transparent break up between Ethereum the network and ETH the asset.
“I’m massively bullish Ethereum,” he wrote, including that he expects the community to carry out effectively. But he mentioned solely a “marginal quantity” of that success could also be mirrored in ETH.
That is the core of his argument. Ethereum might proceed to dominate stablecoins, tokenization, DeFi, and Layer 2 exercise. But ETH might now not seize sufficient worth from that progress to justify a serious asset rerating.
The Value Capture Problem
Hoffman argued that Ethereum is structurally designed to provide worth again to its ecosystem.
He described Ethereum as “a giver, not a taker,” saying it supplies safe blockspace to L2s, tokenizes real-world property, and helps DeFi with out taking a lot financial markup.
That view matches the present market debate. Ethereum utilization stays robust throughout areas comparable to stablecoins and rollups. But L2s and functions now seize a lot of the exercise that after supported the previous fee-burn narrative.
As a outcome, Ethereum can develop as infrastructure whereas ETH fails to outperform.
ETH Faces Weak Technical Momentum
The timing additionally issues. ETH is buying and selling near a key help vary after failing to construct robust momentum above $2,200. Analysts have warned {that a} break beneath the present zone might weaken the chart additional.
At the identical time, institutional demand stays uneven. Ethereum ETFs haven’t delivered the constant inflows wanted to offset weaker market confidence.
A Symbolic Exit From an Ethereum Insider
Hoffman mentioned he isn’t bearish on ETH. He mentioned he needs to allocate capital elsewhere as a result of he doesn’t anticipate ETH to be “structurally rerated” greater or decrease.
Still, the transfer carries weight.
For years, Bankless helped popularize ETH as web cash. Hoffman’s exit exhibits that even some Ethereum believers now query whether or not ETH stays the very best monetary expression of Ethereum’s future.
The publish Why Bankless Co-Founder Sold His Entire Ethereum Portfolio appeared first on BeInCrypto.
