Recent developments within Ethereum have sparked new uncertainty about the future of the blockchain ecosystem. With ETH now stuck around the $2,100 mark and delivering virtually no gains to long-term holders over the last five years, a shifting mood is emerging—especially among former advocates—casting doubt on Ethereum’s ongoing appeal in crypto circles.
Major voices reassess Ethereum
David Hoffman, co-founder of the Bankless platform and once a vocal Ethereum supporter, recently liquidated all of his personal ETH holdings. Hoffman explained that recent trends in crypto, along with the sequence of cyberattacks in April, motivated his decision to move away from Ethereum. Meanwhile, his colleague Ryan Adams announced that he also intended to scale back his direct involvement with Bankless, though he maintained an overall positive view toward both crypto and ETH itself.
Bankless is widely recognized as a provider of content and analysis focused on cryptocurrencies. According to on-chain data, the platform’s public wallet currently holds less than 1 ETH, underscoring this shift in attitude and signaling a broader reevaluation within the industry.
As David Hoffman gravitates toward new narratives outside Ethereum and Ryan Adams takes a step back from control, observers on social media have interpreted these moves as a signal of Ethereum losing favor, while rival networks gain ground.
Mini dictionary: Bankless is a media platform focusing on Ethereum and decentralization, delivering news and analysis from the cryptocurrency and blockchain world.
Technical outlook and price trends
According to a Messari report, Ethereum’s market dominance in May fell below its baseline and has managed to recover only to 4.2%. While Ethereum remains historically important for decentralized finance and stablecoin transfers, market interest and user motivation continue to lag.
As of May 2026, the fear and greed index shows ETH investor sentiment as “neutral.” Open interest for ETH futures stands near $12.3 million, hovering at yearly lows. Despite some resilience in derivatives activity compared to the 2022–2023 bear market, ETH’s price has retreated 55% from its August 2025 peak. Ongoing weakness and persistent selling pressure in spot markets are holding the cryptocurrency back from establishing fresh price ranges.
| Market Indicator | May 2026 | August 2025 Peak |
|---|---|---|
| ETH price | $2,100 | 55% below all-time high |
| Open interest | $12.3 million | Higher |
| Market sentiment | Neutral | Bullish |
Governance shake-up and rivals on the rise
A recent analysis by Santiment reveals that traders and Ethereum supporters have adopted a more pessimistic outlook in recent weeks. Notably, departures from the Ethereum Foundation have fueled questions about the long-term direction of the network. While sentiment around ETH was more upbeat in April, comments became increasingly negative through May.
Although the Foundation briefly promoted Layer-2 scaling solutions, prompting a short-lived rally, attention has shifted back to scaling the core Layer-1 network. In the meantime, alternative blockchains such as BNB Chain, Solana, and Hyperliquid are attracting attention with their faster transaction speeds and lower costs compared to Ethereum.
Tom Lee, founder of Fundstrat, attributed Ethereum’s current negative sentiment to shrinking market liquidity, but emphasized that the blockchain still holds long-term promise as a foundational platform for global finance and artificial intelligence.
Structural headwinds and inflation
With Ethereum’s gas fees plunging to record lows, the weekly minting rate of new ETH has increased. The network is now experiencing annual inflation of 0.82%. While staking has helped offset this to an extent, validators often need to sell or lend their ETH in order to secure profits. Meanwhile, a lack of fresh narratives and exciting developments has led investors to explore blockchain alternatives.
Recent sentiment data and outflows from major stakeholders highlight a challenging chapter for Ethereum, as both small and large investors search for new opportunities. This period marks the slowest phase for ETH in five years, with morale at a low point and major influencers redistributing their attention.
