While maintaining an optimistic outlook on the long-term prospects of the Ethereum network, Hoffman has changed his view on the ETH token. He believes that although Ethereum has succeeded as a public infrastructure project, the value appreciation of the token has not been fully realized. As a result, he now adopts a stance he calls 'structural neutrality.'
The development path chosen by Ethereum has brought significant victories to the network, but it has failed to meet expectations for rapid financial returns from ETH. Despite the robust infrastructure, the token's performance has lagged behind.
As the Ethereum community focuses on rollup-based scaling models, a significant portion of the network's revenue is now concentrated in Layer-2 structures. While this approach has reduced transaction fees, the rate of ETH burn has slowed compared to previous bull markets, leading to diminished upward price pressure on the base layer.
Hoffman further points out that ETH has lost its status as a central digital currency, largely due to the explosive growth of stablecoins. Currently, the total amount of stablecoins hosted on the Ethereum network exceeds $160 billion, enhancing the role of on-chain dollars rather than directly boosting the demand for ETH. In other words, while Ethereum plays a crucial role in financial infrastructure, most assets circulating on the network are not directly linked to ETH, with dollar-pegged stablecoins now serving as the primary unit for settlement and trading.
Despite Hoffman's criticisms, ETH remains an important collateral in decentralized finance (DeFi News) applications, is used for staking to earn rewards, and serves as the base token for network transaction fees. Some industry experts believe that the slowdown in ETH's value appreciation reflects its maturation as infrastructure, transitioning from a phase of exuberance to widespread adoption.
A key insight in the discussion is that as Ethereum prioritizes the development and long-term growth of its ecosystem, it leaves the financial progress of ETH to unfold over time. So far, the overall success of the network has outpaced the performance of its token.