Ethereum Set for Breakout as Stablecoins Drive Demand, Analyst Says

Ethereum is positioned for a significant breakout as stablecoins create a transformative “ChatGPT moment” for Wall Street and cryptocurrency convergence. Fundstrat Global Advisors co-founder Tom Lee cited rising demand from stablecoins and Wall Street’s tokenization of real-world assets as key drivers for Ethereum’s growth. Ethereum handles more than 60% of tokenized real-world assets and is seen as a technology platform rather than just a digital asset. Lee connected Ethereum’s prospects to broader market dynamics, noting that small-cap stocks and ETH move in sync, and that Fed cuts are expected to boost risk assets.

Ethereum (ETH) is poised for a significant breakout, according to Fundstrat Global Advisors co-founder Tom Lee. Lee cited rising demand from stablecoins and Wall Street’s tokenization of real-world assets as key drivers for Ethereum’s growth. Over the past month, Ethereum has gained 22% despite a 9% year-to-date decline [1].

Ethereum now handles more than 60% of tokenized real-world assets, with major financial institutions like JPMorgan Chase & Co. and Robinhood Markets Inc. building infrastructure on the platform. Lee emphasized Ethereum’s role as a technology platform rather than just a digital asset, noting that JP Morgan’s stablecoin is built on Ethereum and Robinhood is building its tokenizing business on the same platform [1].

The analyst also highlighted crypto’s leading indicator status for equities, noting that Bitcoin has historically led the S&P 500 by one month. Lee connected Ethereum’s prospects to broader market dynamics, noting that small-cap stocks and ETH move in sync. With the Federal Reserve expected to cut rates later in 2025, he sees tailwinds building for risk assets [1].

The analysis comes as Ethereum crossed the key $3,000 resistance level on Tuesday, with its market dominance rising to 10.2%. Cryptocurrency analyst Rekt Capital said Ethereum needs to “convincingly break” 10% market dominance to enter a historically bullish phase [1].

BitMine Immersion Technologies Inc., where Lee serves as chairman, has implemented an Ethereum treasury strategy and raised $250 million to accumulate ETH. The company now holds 163,142 ETH tokens [1].

References:
[1] https://www.benzinga.com/crypto/25/07/46434516/tom-lee-says-ethereum-set-for-breakout-as-stablecoins-become-chatgpt-moment-for-wall-street-and-crypto
[2] https://www.tradingview.com/news/cryptonews:03d6fbcae094b:0-ethereum-9-65-away-from-massive-4-year-breakout-3-500-eth-before-weekend/
[3] https://www.newsbreak.com/benzinga-520061/4110919423723-tom-lee-says-ethereum-set-for-breakout-as-stablecoins-become-chatgpt-moment-for-wall-street-and-crypto