Bankless Co-Founder Says He Sold Ether as Upside Momentum Faded
Summary
- David Hoffman said he sold his Ether holdings because of weaker upside momentum and a lower chance of a structural re-rating.
- He said Ether is now receiving a valuation in line with the Ethereum network's current growth level, reducing the likelihood of the kind of outsized gains seen in the past.
- Hoffman said he reallocated capital to other market opportunities because value is dispersing across applications, Layer 2 (L2) networks, stablecoins, and the on-chain asset ecosystem.
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David Hoffman, the Bankless co-founder known as an Ethereum bull, said he sold his Ether holdings because the token's upside momentum has weakened.
Wu Blockchain reported on May 26 that Hoffman remains bullish on the Ethereum network itself. But he said the "ETH is Money" narrative has already largely played out.
Hoffman said Ether is now fairly valued relative to the Ethereum network's current growth rate. As a result, the chances of a sharp gain driven by a structural re-rating are lower than in the past.
Based on that view, he sold Ether and reallocated the capital to other market opportunities.
He also said that in Ethereum's current ecosystem, value is dispersing beyond Ether itself to applications, Layer 2 networks, stablecoins and the broader on-chain asset ecosystem.
"Ethereum is increasingly serving as the base layer for a range of applications and infrastructure," Hoffman said. "But the value created in that process does not necessarily translate directly into gains in Ether's price."
