Fundstrat’s head of research, Tom Lee, is making a bold call on Ethereum (ETH), predicting that the second-largest crypto by market cap will erupt by 30x in just a few years.
Speaking at the Paris Blockchain Week, Lee says Ethereum is in the middle of a massive consolidation that history suggests is the setup for an explosive move higher.
“You take a look at Ethereum’s chart over the last 10 years, I think it’s going through a major consolidation, a massive consolidation. In the first consolidation, Ethereum went on to rise by 220 times. And then the consolidation that ended in 2019, Ethereum rose by 50x. So I think there is a massive move coming in Ethereum.”
Lee says he sees two primary catalysts behind his conviction: tokenization and agentic AI. Looking at tokenization first, he predicts that all physical and financial assets will be converted into digital tokens on a blockchain, with Ethereum positioned as the blockchain of choice.
“I think that’s happening today because now we’re digitizing everything. And look, even Jamie Dimon, the biggest skeptic on blockchain, even recently stated that crypto is better than the current financial system. Everyone who’s building in crypto is going to develop these future products, and that’s stablecoins, tokenized equities, tokenized monetary reputation, but it’s also really part of the future agentic system.”
On the AI side, Lee says that autonomous AI agents will naturally gravitate toward crypto rails for payments, not because they prefer crypto over dollars, but because existing payment infrastructure is not built for the way AI agents transact.
“I don’t think AI systems care that they’re using dollars to collect payments, but they almost certainly don’t want to be using PayPal or Visa or MasterCard to do micropayments, because they want to use smaller units of accounts, and that’s where crypto comes into play.”
According to Lee, the two mega trends could power Ethereum out of its multi-year consolidation and climb as high as $60,000 within a few years.
“That gets us to what we think is the payment rails number, that Ethereum is going to be roughly a quarter of the value of Bitcoin, and that gets you to $62,000. If you look at the last crypto lows and make a composite of where Ethereum could be in roughly three years, that would be a 30x, and that would take us to around $60,000.”
Ethereum is currently trading at $2,350.
Photo by Yiğit Ali Atasoy on Unsplash
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