Ethereum has lost more than 60% from its 2025 peak near $5,000, and the sustained decline is prompting some of the token’s most visible long-term advocates to reassess their positions.
Bankless co-founder David Hoffman recently disclosed that he has sold his entire Ethereum holding, a move that caught the crypto community off guard, given that Hoffman spent years promoting the concept of ETH as money and was one of the ecosystem’s most recognisable voices.
Why Hoffman Sold
Hoffman was careful to clarify that the decision was not driven by a negative view of Ethereum as a network. In his view, Ethereum has already delivered much of what its supporters had hoped for. The network became one of the largest ecosystems in crypto, and ETH reached a valuation that reflects a significant portion of that success.
“The thing happened, it had some amount of success, and that’s a wrap on the story,” he said.
Rather than waiting for another major revaluation, he moved capital into assets he believes offer more upside from current levels. Reports indicate he allocated roughly half the proceeds into VVV, NEAR, ZEC, and HYPE, and used the remaining half to purchase LIT.
He also argued that Ethereum operates more like a public utility than a value-accruing business, and that ETH needs stronger leadership, better coordination, and a clearer direction before it can attract a new wave of serious investor interest.
A Second Exit
Hoffman is not alone. Milk Road reported that lead analyst m0xt also recently sold his remaining ETH holdings. His reasoning was different, but he arrived at a similar conclusion. When a strong stock falls 60%, investors typically have a valuation framework to determine whether it has become cheap.
With ETH, m0xt said, no clear method exists for establishing fair value. That absence of a reliable valuation anchor means the 60% drop does not automatically make the token attractive.
Both figures continue to support Ethereum’s long-term relevance. They simply see better risk-reward elsewhere right now.
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