David Hoffman, founder of the media company Bankless and a staunch advocate of the Ethereum network, announced that he sold all his Ether (ETH) assets last week. According to him, the long-standing "ETH is Money" theory has served its purpose, and there is now little room for a fundamental shift in the asset's price. This was reported by Cointelegraph.com reports .
In a post on the X social network, Hoffman noted that Ethereum has achieved the market capitalization it deserves. In his view, the market will no longer revalue the asset, and no sharp upward or downward price movements are expected. "Ethereum has performed very well, but the opportunity for the market to push the asset to a new level is closing," he added.
The "ETH is Money" theory considers this token a superior store of value compared to fiat currencies, citing its decentralization and anti-inflationary mechanisms. Many investors expected the ETH price to reach five-digit figures, but the cryptocurrency peaked at around 5,000 USD and is currently trading at about 2,000 USD, nearly 60 percent below its record high.
Hoffman stated that he still believes in the future of the Ethereum network, but that only a small portion of the network's success is reflected in the token price. He explained that Ethereum has become a "provider" system that ensures secure block space and tokenization, while Layer-2 networks are capturing the primary profits and fees.
This decision was met with mixed reactions in the crypto community. Bankless co-founder Ryan Sean Adams called it "the end of an era." Former Ethereum developer Eric Connor stated that he understands Hoffman's decision, as ETH has been underperforming relative to the broader crypto market for many years.
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