Two influential voices in the Ethereum community have publicly disclosed significant reductions in their Ether holdings, adding a high-profile insider dimension to the ongoing debate over the asset’s market performance.
Eric Connor, a former core developer of Ethereum, stated on X that he has substantially cut his personal ETH position over the past one to two years. Responding to a post by Bankless host David Hoffman, Connor acknowledged that Ether has underperformed the broader cryptocurrency market for an extended period. He noted that the alternative assets he purchased after selling portions of his ETH have delivered much higher returns. However, Connor stopped short of blaming Ethereum’s technology, saying he does not believe the weak price action stems from a protocol flaw. Instead, he attributed the persistent stagnation to profit-taking pressure from early investors who accumulated large amounts of ETH during the network’s initial rise. This gradual distribution, he argued, has created a ceiling on price appreciation that is independent of Ethereum’s technological progress or adoption. Connor also criticized single-asset maximalism, calling it unwise and emphasizing that “the market does not lie.”
David Hoffman, co-host of the popular Bankless podcast, went even further. He revealed on May 21 that he had sold his entire ETH position, citing a lack of near-term catalysts for further price growth. Hoffman’s core thesis—that “ETH is money”—has, in his view, already been fully priced in by the market, leaving little room for upside without new fundamental drivers. He contended that while Ethereum generates enormous economic value, the bulk of that value accrues to Layer‑2 projects and applications, leaving only “crumbs” for the ETH token itself. This contrasts sharply with competitors like Solana (SOL) and Near Protocol (NEAR), where revenue growth is more directly linked to token price appreciation. Hoffman also stressed that Ethereum’s future depends on a complex mix of factors: the Ethereum Foundation’s ability to balance decentralization with market responsiveness, cohesive alignment among Layer‑2 projects, and successful execution of a roadmap that can outpace rival blockchains.
The disclosures from Connor and Hoffman carry symbolic weight. As a former core developer and a leading Ethereum-focused media personality, their decisions may prompt other long-term holders to reassess their own conviction. The news highlights a growing debate over value capture—whether the base-layer token of a smart-contract platform should directly benefit from the economic activity it enables. While many analysts still point to upcoming network upgrades, increasing institutional adoption, and potential ETF inflows as bullish catalysts, the public exits of two prominent insiders underscore the uncertainty surrounding ETH’s medium-term price outlook.
For retail investors, the episode serves as a reminder of the importance of diversification and the risks of single-asset conviction in a volatile market. Neither Connor nor Hoffman indicated that Ethereum’s long-term viability is in question, but their actions reflect a shift in sentiment among some of the ecosystem’s earliest participants.
