David Hoffman reallocates capital after concluding Ethereum’s valuation reflects its progress, limiting further ETH rerating potential.
Bankless co-founder David Hoffman sold his ETH holdings, stating the ‘ETH Is Money’ thesis has largely played out. He believes Ethereum’s current valuation aligns with its development, reducing the likelihood of a major structural rerating for ETH.
Hoffman remains bullish on Ethereum’s network, noting its architecture benefits applications, Layer 2 solutions, stablecoins, and the broader onchain ecosystem. However, he argued this value does not directly accrue to ETH itself, prompting his decision to seek other opportunities.
The move reflects a strategic shift rather than a loss of confidence in Ethereum’s long-term potential, according to his remarks.