Ethereum bull David Hoffman explains why he sold his ETH

David Hoffman, an Ethereum advocator and the co-founder of the media institution Bankless, says helium sold the remainder of his Ether (ETH) holdings past week arsenic helium believes the “ETH is Money” thesis has mostly “played out.”

Hoffman said successful an X station connected Tuesday that “Ethereum got the ETH terms it deserves, and I don’t spot ETH being rerated arsenic an asset, higher oregon lower.”

Hoffman said that Ethereum “has done incredibly well, and deserves the marketplace headdress that it has,” but the “window of accidental for ETH to beryllium ‘rerated’ by the marketplace seems to beryllium closing.”

“ETH is, to immoderate degree, money. But not the maximally palmy mentation that we collectively sought retired to achieve.”

The “ETH is Money” thesis believes the token is simply a superior store of value compared to fiat money, arsenic it is decentralized and has introduced mechanisms to effort to combat inflation, oregon the magnitude of caller tokens being created.

Many Ether backers believed the token could scope the precocious five-figures, but ETH reached an all-time precocious of conscionable beneath $5,000 successful August, astir adjacent to its erstwhile bull marketplace highest during the past cycle. It has since dropped by astir 60% from its all-time highest to commercialized astir $2,000.

ETH prices person been mostly rangebound for 5 years. Source: TradingView

Hoffman, a long-time Ethereum bull who has written extensively connected concern cases for Ether, announced selling his full ETH holdings, the worth of which helium did not disclose, connected May 21.

He said that Ethereum is simply a “giver, not a taker,” providing unafraid blockspace and tokenization astatine outgo portion the blockchain’s layer-2 networks seizure astir of the fees and benefit.

“Ethereum takes nary markup for thing it does. This is the quality of unfastened root software, and this is the powerfulness of Ethereum. Ethereum supplies its afloat acceptable of incredibly important values to the world… astatine cost.”

Hoffman reiterated that helium is “massively bullish” connected Ethereum, expecting that the web volition bash “exceptionally good from present connected out,” but lone a “marginal amount” of that occurrence volition beryllium reflected successful its token.

Related: Tom Lee predicts supercycle amid Bitmine’s largest Ethereum bargain successful 2026

Hoffman’s merchantability saw mixed reactions from ETH backers, with Bankless co-founder Ryan Sean Adams saying it was the “end of an era.” 

Former Ethereum halfway developer Eric Connor said helium didn’t truly blasted Hoffman due to the fact that ETH has “grossly underperformed the wide crypto marketplace for galore years now.”

He attributed the lag chiefly to selling unit from the ample fig of millionaires created during its explosive aboriginal run-up alternatively than cardinal protocol shortcomings.

“At the extremity of the day, maximalism to a azygous coin erstwhile it comes to portfolio absorption is beauteous silly,” helium said. 

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