Bankless co-founder David Hoffman has sold his ETH position after rethinking the long-standing idea that “ETH is money.” Despite the sale, he hasn’t turned negative on Ethereum and still sees the network as a strong long-term ecosystem.
“The ‘ETH is money’ thesis has played out.”
His view is that Ethereum has already proven itself as a major base layer, but the next phase of growth may not translate into the same upside for ETH as an asset.
Value is shifting across the Ethereum ecosystem
Hoffman’s main argument is about how value gets distributed.
Ethereum supports a wide stack of activity, apps, DeFi, stablecoins, tokenized assets, and layer-2 networks, but much of the economic upside, in his view, is increasingly captured at the application and L2 level rather than flowing back to ETH itself.
Stablecoins are a key example. Ethereum now hosts a dominant share of global stablecoin liquidity, with supply reaching record levels this year. That strengthens usage across the network, but also reinforces Ethereum as financial infrastructure rather than purely a demand driver for ETH.
Layer-2 growth and fragmentation concerns
The layer-2 ecosystem is another pressure point in the value debate around Ethereum.
Hoffman previously argued that L2 teams need room to innovate quickly, but also stronger alignment with the broader Ethereum economy. The concern is that rollups improve scalability, but may also capture more fees and activity away from ETH.
Efforts are already underway to address this. New initiatives across the ecosystem aim to reduce fragmentation and standardise how L2s interact, including shared frameworks for using ETH as gas across networks.
Treasury adoption adds a different demand story
While Hoffman steps back from holding ETH personally, other players continue building exposure to it.
Some listed companies are expanding Ethereum-focused treasury strategies, treating ETH as a strategic balance-sheet asset and linking their financial positioning to its long-term role in digital infrastructure.
That contrast is becoming more visible: individuals questioning ETH’s upside versus institutions still building around it.
Still bullish on Ethereum, just a different lens
Even after selling, Hoffman’s stance isn’t bearish. He still views Ethereum as a foundational layer of the digital economy, but with a more cautious expectation about how much of that growth accrues directly to ETH going forward.
In short, the belief in Ethereum remains intact, the debate is really about where the value ends up.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
