What does Daniel 2:38 mean?
Daniel is giving the interpretation of Nebuchadnezzar's dream (Daniel 2:1–3), crediting it to the One True God (Daniel 2:27–28). Here, he partly explains what he meant by the phrase "king of kings" in the prior verse (Daniel 2:37). The prophet Jeremiah had predicted Nebuchadnezzar's extensive rule. Jeremiah 27:6 quotes the Lord as saying, "I have given all these lands into the hand of Nebuchadnezzar, the king of Babylon, my servant, and I have given him also the beasts of the field to serve him." Daniel showed respect for Nebuchadnezzar, but he had a much higher regard for the God of Israel, and he wanted Nebuchadnezzar to know that he owed his position and power to the true God.In Nebuchadnezzar's dream, he had seen a massive statue made of various materials (Daniel 2:31–35). According to Daniel's explanation (Daniel 2:36), the statue's golden head represented king Nebuchadnezzar, himself. The head stands for the Babylonian Empire, over which Nebuchadnezzar reigned.
Daniel will continue the interpretation of the king's dream by predicting a succession of other kingdoms, also formed as parts of the statue. These are described by a series of metals that lessen in value. The kingdoms are also increasingly "divided," until the toes are depicted as a fragile mix of metal and pottery (Daniel 2:39–45).