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Why Bankless Co-Founder Is Selling All His Ethereum Portfolio

Bankless co-founder, David Hoffman, revealed that he has sold his ETH because he no longer believes that Ethereum's success will be fully reflected in the rise of ETH prices.

Hoffman, one of the most well-known supporters of Ethereum media, stated that the thesis “ETH is money” is not a failure. Instead, he believes that thesis has already been realized. “The thesis that ETH is money is not a failure… it’s already happening,” he wrote.

His statement came as ETH was trading in a fragile support zone around US$2,050 to US$2,100. The asset is struggling to break through a strong resistance above US$2,300, while ETF flows and on-chain demand remain mixed.

Hoffman: Ethereum Network Can Win, But ETH Might Fall Behind

Hoffman clearly distinguishes Ethereum as a network and ETH as an asset.

“I am very bullish on Ethereum,” he wrote, adding that he believes the network will perform well. But he assesses that only “a small part” of that success will be reflected in ETH.

This is the core of his argument. Ethereum can still dominate stablecoins, tokenization, DeFi, and layer-2 activities. But ETH may no longer be able to capture enough value from that growth to justify a significant revaluation of the asset.

The Issue of Value Capture

Hoffman explained that Ethereum is structurally designed to return value to its ecosystem.

He describes Ethereum as “a giver, not a taker,” providing secure blocks for layer-2, tokenizing real-world assets, and supporting DeFi without taking large economic margins.

This view aligns with current market debates. Ethereum usage remains strong, especially in stablecoins and rollups. But now, layer-2 and applications are absorbing much of the activity that previously supported the narrative of fee-burn.

Ultimately, Ethereum can develop as infrastructure, while ETH fails to deliver better performance.

ETH Faces Weak Technical Momentum

Timing also plays a role. ETH is now near a major support area after failing to build strong momentum above US$2,200. Analysts also warn that if it drops below this zone, ETH’s chart could weaken further.

At the same time, institutional demand remains inconsistent. Ethereum exchange-traded funds (ETFs) have yet to record stable inflows needed to restore market confidence.

Symbolic Move by Ethereum Insiders

Hoffman emphasizes that he is not bearish on ETH. He wants to allocate capital elsewhere because he does not expect ETH to be “revalued structurally” either higher or lower.

Nevertheless, this move still carries significant meaning.

For years, Bankless has helped popularize ETH as internet money. However, Hoffman’s departure signals that even Ethereum supporters are now beginning to question whether ETH remains the best way to reflect Ethereum’s financial future.