Ethereum is now gaining widespread momentum as one of those revolutionary blockchains that have the power to “reboot” the world. Fundstrat’s Tom Lee is betting big on Ethereum’s tokenization capability and believes that the asset is still underrated and is on the brink of a positive price explosion in the near future.
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What Ethereum Can Truly Become: Fundstrat’s Tom Lee Explains
Fundstrat’s Tom Lee, in a recent podcast, has explained how Ethereum might be entering into its super cycle moment, or perhaps has entered already. Per Lee, Ethereum is evolving into a core product offering exceptional tokenization capabilities, which, once manifested in form, could help trigger an ETH price breakout rally.
Lee later compared the blockchain to one of the most classic 1971 Wall Street moments, stating how Ethereum is slowly embracing tokenization narratives.
“But Ethereum, which we’ve been writing about, is probably in a super cycle, similar to what happened to Wall Street in 1971. Because in 1971, the US withdrew from the gold standard. So the dollar became actually synthetic, completely synthetic. Wall Street stepped in to make sure the dollar stayed the reserve currency. So they built futures, CDs, and money markets. And it succeeded because within 10 years, even though the dollar was only 27% of GDP, it became 53% of central bank reserves and 80% of all financial market quotes.”
Lee was quick to emphasize how BlackRock’s Larry Fink and Robinhood want to tokenize everything, an idea in which ETH is bound to play a significant role.
“We’re tokenizing more than just the dollar; the stablecoin is the breakout product, which is a tokenized dollar. But as you know, Larry Fink and Robin Hood want to tokenize everything on the blockchain, and they’re going to build it on a neutral public chain, which is right now 70% happening on Ethereum.”
All On Blockchain: ETH Torch Bearer Moment
With the US government wanting to promote stablecoin development to assert US dollar dominance, ETH has now become a central entity gravitating close to this narrative. Many experts believe ETH can become a central blockchain spearheading this change, echoing Lee’s thoughts on ETH at the same time. In addition to this, Lee shared how he thinks such a value proposition may help Ethereum hit $21K in the near future.
“So Ethereum is experiencing that same 1971 moment where Wall Street’s rebuilding everything onto a blockchain, which we think it’ll be Ethereum. Ethereum could recover its Bitcoin, Ethereum ratios, and 2021 highs; that would put Ethereum at around 21,000 per token. So it’s, I think, an undervalued asset. And by acquiring more and staking it, we benefit from the power loss.”
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