Fundstrat Co-Founder Predicts 300% Gain for Ethereum to $10,000

Fundstrat co-founder Tom Lee has made a bold prediction about the future value of Ethereum, suggesting that the cryptocurrency is significantly undervalued and could reasonably reach $10,000. This figure represents a nearly 300% increase from current prices, based on Lee's analysis of comparative business valuations.

Lee's argument is grounded in the valuation of Circle, a company that issues stablecoins primarily on the Ethereum blockchain. Circle trades at approximately 100 times its EBITDA, reflecting investor confidence in stablecoin operations. Lee contends that layer-1 blockchains like Ethereum should command higher multiples than applications built on top of them, given their foundational role in supporting numerous projects.

Lee questions the current market price of Ethereum, implying that it fails to reflect the structural advantage of the blockchain. He suggests that growing asset tokenization could further expose this discrepancy, driving a reappraisal of Ethereum's value. Lee's analysis assumes broader market recognition of Ethereum's role and wider adoption of tokenized real-world assets, which could drive the cryptocurrency's price to $10,000.

Lee's prediction is based on the idea that if tokenized assets like stablecoins command 100x EBITDA multiples, the underlying blockchain should be worth significantly more. He argues that Ethereum's current market price does not reflect this structural advantage, and that growing asset tokenization could further expose this discrepancy.

Lee's analysis assumes broader market recognition of Ethereum's role and wider adoption of tokenized real-world assets, which could drive the cryptocurrency's price to $10,000. He contends that layer-1 blockchains like Ethereum should command higher multiples than applications built on top of them, given their foundational role in supporting numerous projects.

Lee's prediction is based on the idea that if tokenized assets like stablecoins command 100x EBITDA multiples, the underlying blockchain should be worth significantly more. He argues that Ethereum's current market price does not reflect this structural advantage, and that growing asset tokenization could further expose this discrepancy.

Lee's analysis assumes broader market recognition of Ethereum's role and wider adoption of tokenized real-world assets, which could drive the cryptocurrency's price to $10,000. He contends that layer-1 blockchains like Ethereum should command higher multiples than applications built on top of them, given their foundational role in supporting numerous projects.