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Bankless co-founder and longtime Ethereum advocate David Hoffman has revealed that he has totally offered his private Ether, stressing, nevertheless, that he stays deeply optimistic about Ethereum’s future.
In a Tuesday tweet, Hoffman clarified that the transfer was not motivated by short-term bearishness or a lack of religion in Ethereum’s expertise.
“When you missed the information final week, I offered my ETH,” Hoffman wrote, noting the emotional weight of the choice after years spent constructing his profession and neighborhood round Ethereum. “The ETH is cash thesis didn’t fail… it performed out.”
In response to him, Ethereum’s evolution through the years has remodeled the way in which he evaluates the asset. Whereas he nonetheless sees Ethereum as some of the essential infrastructures in crypto, he now not believes ETH itself is considerably undervalued relative to the community’s present financial design.
In his view, Ethereum has turn into “a giver, not a taker,” providing low-cost safety and settlement infrastructure whereas permitting a lot of the ecosystem’s worth to circulation towards functions and layer-2 networks constructed on high of it.
 
Hoffman additionally stated charges are a key metric for valuing layer-1 blockchains, arguing Ethereum didn’t maintain income dominance lengthy sufficient to spark one other main repricing cycle as previous bull runs. He in contrast Ethereum’s sturdy fee-driven momentum through the 2021 cycle to Solana’s resurgence in 2024 and NEAR’s progress in 2026, arguing that intervals of explosive price era typically correlate intently with sharp will increase in token valuations.
Past Ethereum’s valuation mannequin, he additionally mirrored on the broader evolution of crypto narratives over the previous a number of years. He revisited earlier visions surrounding DeFi, NFTs, and DAOs, industries as soon as seen because the constructing blocks of a completely autonomous digital financial system.
Nevertheless, he famous that mainstream enthusiasm for crypto lasted solely briefly, from late 2020 to early 2022. Outdoors of that window, the business’s picture has largely been dominated by hypothesis, hacks, scams, and restricted real-world adoption.
The pundit additionally highlighted the explosive rise of stablecoins as considered one of Ethereum’s greatest success tales. Stablecoin liquidity on the Ethereum community has reportedly surged from roughly $3 billion in 2020 to greater than $160 billion right this moment.
Nonetheless, he argued that this progress primarily reinforces the dominance of the U.S. greenback slightly than strengthening ETH as an unbiased financial asset. In essence, Ethereum has turn into the infrastructure powering the enlargement of digital {dollars} slightly than changing conventional financial techniques.
Regardless of his choice to promote, Hoffman insisted that exiting ETH doesn’t imply abandoning Ethereum itself.
“I stay extremely optimistic in regards to the Ethereum community and its ecosystem,” he said.
As an alternative, he defined that he has merely reallocated capital towards different alternatives throughout the broader market, including that he at present sees restricted upside for a dramatic structural repricing of ETH.
Hoffman’s remarks arrive at a tough second for Ethereum traders. Though Ethereum stays the second-largest cryptocurrency by market capitalization and continues to dominate decentralized finance and good contract exercise, ETH has struggled to regain momentum after a protracted correction.
The cryptocurrency stays considerably beneath its all-time excessive of $4,953, with prolonged consolidation and weak worth motion exhausting many traders over current months. Since February, ETH has largely traded sideways amid rising competitors from rival chains and rising migration towards layer-2 ecosystems.
Nonetheless, many analysts proceed to defend Ethereum’s strategic significance inside crypto markets. Earlier this month, macro analyst Jordi Visser described Ethereum as “gasoline” for AI brokers, arguing that the community might turn into a crucial layer powering rising synthetic intelligence-driven economies.
At press time, ETH was buying and selling at $2,016, reflecting a 1.94% drop previously 24 hours.
