Tom Lee Says Ethereum Could Break $5,000 as Wall Street Adoption Accelerates

Ethereum (ETH) is trading near $1,880, roughly 60% below its 2025 high of almost $5,000. Despite the steep decline, Fundstrat co-founder Tom Lee believes the current gap reflects a transition phase rather than a long-term ceiling, arguing that institutional adoption could drive Ethereum to new highs.

In Bitmine’s July Chairman’s message, Lee said Ethereum is entering a new growth era led by Wall Street. He noted that the blockchain’s earlier cycles were fueled by initial coin offerings (ICOs), NFTs, ETFs, and stablecoins, all of which helped ETH approach the $5,000 level twice. This time, he expects institutional demand to become the primary catalyst.

“Unlike the crypto bear market of 2022, Wall Street is building on Ethereum,” Lee said.

He pointed to BlackRock’s BUIDL fund, which now manages around $2.6 billion in tokenized U.S. Treasuries and recently earned Moody’s highest money market rating. JPMorgan has also expanded its blockchain strategy through its MONY fund, building on its tokenization efforts launched with Onyx in 2020.

Lee added that Ethereum continues to dominate developer activity, citing Electric Capital data showing nearly 6,000 developers actively building on the Ethereum Virtual Machine (EVM), reinforcing its leadership in blockchain innovation.

Another pillar of Lee’s bullish outlook is Robinhood Chain, which launched on Arbitrum on July 1. The network briefly became the third-largest blockchain by decentralized exchange (DEX) trading volume, reaching approximately $811 million in daily activity before Ethereum and Base reclaimed higher rankings. Even so, Lee said cumulative trading volume has already exceeded $1 billion.

Because Robinhood Chain uses ETH as its native gas token and settles transactions on Ethereum’s main network, Lee believes the platform strengthens Ethereum’s role as digital money.

Still, Lee acknowledged the risks. Ethereum has repeatedly failed to break above the $5,000 resistance level, leading some investors to question whether another rally is possible. Critics also argue that Robinhood Chain currently generates minimal fees for Ethereum’s base layer, while Artemis CEO Jon Ma believes much of its activity remains driven by meme coin trading rather than institutional use.

Lee’s optimism also aligns with BitMine’s holdings. The company recently disclosed ownership of 5.77 million ETH, representing roughly 4.8% of Ethereum’s circulating supply, making it one of the largest stakeholders positioned to benefit if institutional adoption accelerates.