Bankless co-founder David Hoffman announced he sold his Ether holdings, explaining that he believes the long-running “ETH is money” thesis has largely run its course. Despite this move, Hoffman remains very bullish on Ethereum’s technology and the network’s long-term potential.
Hoffman said his decision was not made lightly; he built his career, business, community and public identity around Ethereum, making the sale a consequential step.
Ethereum Chose a More Complex Path Than Bitcoin
In a recent social media post, Hoffman argued that the “ETH is money” thesis depended on Ethereum succeeding across many layers of coordination, including decentralized leadership, governance, Layer 2 ecosystems, roadmap execution and ongoing technical development. He contrasted Ethereum with Bitcoin, saying Bitcoin simplified its blockchain design to maximize BTC’s monetary value, while Ethereum pursued a broader vision: enabling decentralized applications, finance, tokenization and rich infrastructure.
Hoffman acknowledged that Ethereum has achieved portions of that vision and has earned a substantial market capitalization as a result. However, he believes the opportunity for ETH to be dramatically re-rated higher now appears to be narrowing. In his view, the multiple coordination challenges required to elevate ETH into global money have proven difficult to sustain.
He also described how the broader “strong” crypto narrative—centered on decentralized finance, NFTs, DAOs and crypto-native systems—enjoyed mainstream attention from 2020 to 2022 but failed to keep long-term public and institutional support. Over time, the sector became associated with scams, grifts and excessive speculation, which weakened the social trust and widespread belief that would be necessary for ETH to function as a global currency.
Hoffman further argued that Ether’s practical utility increasingly benefits other forms of money—particularly stablecoins and tokenized dollars—more than ETH itself. He characterized Ethereum as a “giver, not a taker,” meaning the network supplies secure blockspace, tokenization rails and DeFi plumbing at relatively low cost without always capturing equivalent value for ETH holders. According to Hoffman, Ethereum’s architecture prioritizes applications, rollups and ecosystem growth over maximizing capture by ETH, which makes it harder for the native asset to achieve global money status absent overwhelming market dominance.
Growing Bearish Sentiment Around Ethereum
Hoffman’s decision comes amid intensifying bearish sentiment for Ethereum. Analytics firm Santiment recently noted that social media discourse has shifted from optimism to frustration, with many participants expressing concern about further downside. Traders have increasingly labeled ETH as “dead money” relative to stronger-performing crypto assets in 2026, citing weaker ETF flows, declining on-chain activity and mounting competition from other ecosystems such as Solana and BNB Chain.
Reports and rumors that prominent Ethereum insiders are reducing or exiting ETH positions—including conversations around Hoffman’s move—have added to market uncertainty. Traders and observers worry that such signals could reflect a loss of confidence among influential figures, which may amplify negative sentiment.
Still, Hoffman’s stance underscores a distinction between the network’s technical promise and the market dynamics affecting its native asset. He remains bullish on Ethereum’s ability to support innovation and infrastructure even while questioning whether ETH itself can reclaim a primary monetary role at a global scale.