David Hoffman, co-founder of the prominent DeFi media platform Bankless, has fully liquidated his Ethereum (ETH) holdings and redirected the capital into a basket of five altcoins: VVV, NEAR, ZEC, HYPE, and LIT. The move, first reported on May 21, marks a dramatic shift from a long-time Ethereum advocate who had previously argued that ETH’s market capitalization already accurately reflects the network’s performance and that a major structural revaluation is unlikely.
Hoffman detailed his strategy in subsequent statements, revealing he initially allocated approximately 50% of the proceeds to VVV, NEAR, ZEC, and HYPE. He reserved the remaining 50% for a later, gradual entry into LIT, a token he believes offers a superior risk-return profile. When asked to compare LIT with HYPE, Hoffman highlighted LIT’s buyback program, which he claimed runs at roughly twice the speed of HYPE’s, along with its technically superior product featuring advantageous pricing and lower latency, and the strategic benefit of being US-based.
The sale occurs against a backdrop of intensified competition from faster Layer 1 chains and sideways market movements, prompting traders to seek asymmetric upside in smaller-cap assets. While individual portfolio decisions do not dictate market trends, Hoffman’s exit from ETH entirely—rather than a trim—carries symbolic weight, potentially reflecting a broader capital rotation among crypto-native investors away from Ethereum-centric convictions.
