David Hoffman, co-founder of Bankless said he had sold his ETH following a reassessment. “ETH is money” thesis.
You can read more about it here:
- Hoffman has sold all of his ETH, stating that the money thesis for this asset is largely over.
- Although he remains positive about Ethereum, he believes that apps and L2s could capture more direct value.
- Similar crypto.news reports show that stablecoins and L2 fixes are still driving Ethereum activity.
Hoffman, in a post on May 26, X, wrote that Ethereum had earned its market position. However, he believes there is less space for ETH’s structural rerating to be given by the market.
Hoffman insisted that his sale did not indicate he was now bearish about Ethereum. He said he still believes in the growth of Ethereum and its ecosystem. But he argues that not all that growth is going to flow into ETH. The decision was framed as an investment in capital after concluding ETH’s growth would be limited. “the ‘ETH is money’ thesis has played out.”
Ethereum may not be directly affected by the growth of ETH
Hoffman’s argument focuses on the way Ethereum generates value. The network, he said, supports layer-2 networks and stablecoins as well as tokenized assets. But its open source design returns much of this value back into the ecosystem.
According to him, Ethereum is a growing infrastructure that can continue even if ETH doesn’t capture the entire growth.
As part of the shift, he also mentioned stablecoins. He also pointed to stablecoins as part of that shift. reported In April, Ethereum stablecoins reached a new record of $180 billion. This gave the network a share close to 60% in global stablecoins. It shows that Ethereum is a good choice for network usage, and also how it can be used to strengthen the dollar-based payments rails instead of just ETH demand.
As reported by crypto.news, Vitalik Buterin is also a cryptocurrency. said The Ethereum Foundation is selling less Ethereum under a more lean long-term strategy that focuses on privacy, security, transparency, and resistance to censorship.
The debate on L2 remains central
Ethereum’s layer-2 road map also asks the same question about value capture. Hoffman said that while L2 teams should be given the freedom to work quickly, they must also have a stronger connection to Ethereum and its brand. He said that Ethereum’s rolling up strategy may help scaling but leave margins for L2s, applications and other developers.
Previously reported by Crypto.news: Gnosis Zisk Foundation and Ethereum Foundation launched The Ethereum Economic Zone will be at EthCC in order to combat L2 fragmentation. The framework targets over 20 L2s with a combined value of about $40 billion and aims standardize ETH gas among participating networks.
ETH treasuries present another face of demand
Hoffman’s purchase comes while some public companies continue to build Ethereum-linked Treasury strategies. Crypto.news revealed that SharpLink secured The inclusion of its Ethereum Treasury business, as well as the broader institutional exposure to crypto assets in general.
The story’s market perspective is a result of this contrast. The story takes a market angle because of the contrast.
Hoffman has a position that is between the two: Ethereum will continue to grow but ETH could no longer provide him with the rerating he had once anticipated.
This timing is also in line with a broad Bankless Transition. As per crypto.news reported Bankless was criticized for reported cuts to staff on May 21. Co-founder Ryan Sean Adams stated that the first era of media brands had come to an end. Hoffman’s ETH purchase is another sign of this change.
Ethereum (ETHAccording to crypto.news, the price of, at the moment the report was published, had fallen by 1% in the last 24 hours, and by 2% in the previous week.
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Source: crypto.news
