Ethereum bull David Hoffman explains why he sold his ETH
David Hoffman, Bankless co-founder and long-time Ethereum bull, sold his entire ETH holdings, believing the "ETH is Money" thesis has played out. He argues Ethereum deserves its current market cap but sees no further upside for the token itself, as layer-2 networks capture most value. ETH trades near $2,000 after dropping 60% from its $5,000 peak, facing selling pressure from early adopters.
Key takeaways
- 1David Hoffman sold his entire ETH holdings, believing the 'ETH is Money' thesis has played out with no further upside.
- 2ETH dropped 60% from its $5,000 August peak to trade around $2,000, with prices rangebound for five years.
- 3Layer-2 networks capture most fees and value while Ethereum provides blockspace and tokenization at cost with no markup.
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Why it matters
A prominent Ethereum advocate's exit signals potential weakness in ETH's fundamental investment case and tokenomics, raising concerns for Indian retail investors holding ETH as a long-term store of value. The divergence between Ethereum's network success and token appreciation suggests structural challenges where value flows to layer-2 solutions rather than base-layer holders.
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