Fundstrat's Tom Lee Says Ethereum Is Massively Undervalued, Predicts 10x Upside

Ethereum (ETH) could see significant upside as institutional adoption accelerates, according to Tom Lee, co-founder of Fundstrat and chairman of Ethereum-focused Bitmine Immersion Technologies. Lee likened the rise of stablecoins to artificial intelligence’s “ChatGPT moment,” calling them a viral use case that has gained traction with banks, merchants, and consumers as a reliable payments alternative.

Ethereum currently holds over 50% of the nearly $250 billion stablecoin market and is emerging as a leading blockchain for asset tokenization. Lee noted that institutions are actively seeking a compliant, U.S.-friendly blockchain with a strong base of real-world assets—making Ethereum the top candidate.

“Wall Street is looking for a big, compliant chain, and Ethereum fits that,” Lee told CoinDeskTV. While Bitcoin retains its “digital gold” appeal, Ethereum’s utility in tokenizing financial assets positions it for higher growth.

Fundstrat analysts have set a near-term price target of $4,000 for ETH, with Lee suggesting a fair value of $10,000 to $15,000 by year-end. He emphasized Ethereum’s upside potential, stating, “It’s dramatically undervalued. A 10x return makes ETH a powerful treasury asset.”

Bitmine, formerly a Bitcoin mining firm, has pivoted its strategy to Ethereum under Lee’s leadership. The company recently disclosed over 300,000 ETH exposure—worth over $1 billion—through direct holdings and options.

As stablecoin adoption grows and real-world asset tokenization expands, Ethereum’s position as the leading smart contract platform may become even more entrenched. According to Lee, this is Ethereum's moment to lead the next phase of blockchain’s institutional evolution.