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- Ethereum has lost more than 60% from its 2025 high near $5,000.
- Bankless co-founder David Hoffman sold all of his ETH and reallocated capital into other crypto assets.
- Analysts remain positive on Ethereum’s long-term relevance but see stronger opportunities elsewhere today.
Ethereum’s prolonged downturn is forcing even some of its most dedicated supporters to rethink their investment strategies. After reaching nearly $5,000 during its 2025 peak, ETH has fallen more than 60%, raising questions about its near-term growth prospects and prompting several well-known crypto commentators to move their capital elsewhere.
Among the latest to make that decision is David Hoffman, co-founder of Bankless and one of Ethereum’s most recognizable advocates. Hoffman revealed that he has completely exited his ETH position, surprising many in the crypto community given his years-long support of Ethereum and his belief in the asset’s role within the digital economy.
Hoffman Sees Limited Upside for ETH
Despite selling his holdings, Hoffman emphasized that his decision was not based on a loss of confidence in Ethereum’s technology or ecosystem. Instead, he argued that much of Ethereum’s original investment thesis has already played out.
According to Hoffman, Ethereum successfully established itself as one of the most important blockchain networks in the industry and achieved a market valuation that reflects much of that accomplishment. Rather than waiting for another major appreciation cycle, he chose to rotate into assets he believes have stronger upside potential from current levels.
Reports indicate that roughly half of the proceeds were distributed among VVV, NEAR, ZEC, and HYPE, while the remaining capital was later allocated to LIT.
His comments also highlighted concerns about Ethereum’s future direction. Hoffman suggested that ETH currently resembles a public infrastructure asset more than a traditional value-accruing investment and argued that stronger leadership and clearer strategic coordination could help restore investor enthusiasm.
Another Ethereum Supporter Reaches a Similar Conclusion
Hoffman is not the only prominent voice reducing exposure to Ethereum. Milk Road lead analyst m0xt recently disclosed that he had also sold his remaining ETH holdings.
While his reasoning differed, the conclusion was similar. m0xt pointed to the challenge of valuing Ethereum after such a significant decline. In traditional equity markets, investors often rely on earnings, cash flow, or other financial metrics to determine whether a beaten-down asset is undervalued.
Ethereum, however, lacks a universally accepted valuation framework. As a result, a 60% price drop alone does not necessarily signal an attractive buying opportunity.
Long-Term Confidence Remains Intact
Importantly, neither Hoffman nor m0xt appears bearish on Ethereum’s long-term relevance. Both continue to acknowledge the network’s importance within the blockchain sector and its role as a leading smart-contract platform.
Their recent moves instead reflect a portfolio strategy focused on identifying assets with potentially better risk-reward profiles in the current market environment.
Also Read: Ethereum Faces Identity Crisis: Is a “Second Foundation” the Answer?
Ethereum remains one of the largest and most influential blockchain networks, but its sharp decline has triggered a reassessment among some longtime supporters. As investors search for the next wave of growth opportunities, the debate surrounding ETH’s valuation and future upside is likely to remain a major topic across the crypto market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
