Bankless Co-founder Ryan Sean Adams said that Ethereum is a failed project if ETH never becomes a global store of value. His comments come as ETH trades near April 2025 levels, down roughly 67% from its record high of $4953.
Perhaps responding to the Adams statement sparked debate in the community, fellow Bankless co-founder David Hoffman began to defend ETH.
Ethereum’s Value Thesis Hinges on ETH Appreciation
Reflecting his view on X, Adams said that Ethereum’s success cannot be measured solely by growing blockchain activity, rising stablecoin usage, or expanding decentralized finance adoption.
In his view, if the network grows while ETH fails to capture meaningful value, then Ethereum’s economic model is broken.
“There is no strong Ethereum without an ETH worth trillions. “Without ETH as a global store of value, Ethereum is a failed project. Full stop.”
He compared the argument to saying someone is bullish on America but bearish on the U.S. economy, claiming both are deeply connected.
David Hoffman Questions How Value Reaches ETH
Not everyone agreed. Responding to Adams, another Backless co-founder, David Hoffman, said Ethereum’s success does not automatically guarantee higher value for ETH.
“I want ETH to be a global store of value, but I can’t find anyone to explain how it actually gets from A to B.”
Hoffman noted that Ethereum was deliberately built to minimize aggressive value extraction. Because of that design philosophy, he believes there still needs to be a clearer explanation for how network growth eventually translates into trillions of dollars in value flowing into ETH itself.
The exchange quickly gained attention because it touches one of Ethereum’s biggest unanswered questions: can the network continue expanding if investors lose confidence in ETH as an asset?
ETH Price Drops, While Inflow Breaks 24 Days Straight Outflow
The discussion comes during a difficult period for Ethereum holders. Ethereum has dropped significantly from its all-time high of $4,953 and is currently trading near $1,652, marking a decline of nearly 67% from its peak.
The sharp correction has raised concerns among traders as popular crypto analyst Ali Martinez recently highlighted that Ethereum’s breakdown below $1,825 has increased the risk of further downside.
According to his analysis, a loss of the $1,600 support level could push ETH toward $1,400, a price last seen in March 2024.
The bearish sentiment is also reflected in ETF flows. Between May 11 and June 3, Ethereum ETFs recorded 24 straight days of outflows totaling nearly $1 billion. Perhaps this outflow was broken on June 4, as Ethereum ETFs recorded a $19.3 million inflow, driven entirely by BlackRock’s ETHA fund.
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