Tom Lee Says Tokenization May Drive Current Crypto Bull Market

Bitmine Chairman Tom Lee said asset tokenization may be the core driver of the current crypto bull market, with on-chain financial assets creating a market far larger than earlier retail-led cycles.

Lee described the 2016-17 bull market as mainly driven by retail participation. He said non-fungible tokens shaped much of the 2019-21 cycle, also with strong retail involvement, while stablecoins developed rapidly last year.

The current cycle is focused more on real-world assets and traditional financial assets moving on-chain, Lee said.

Lee estimated that global liquid assets total about $200 trillion. Stocks, bonds and credit account for approximately $160 trillion of that amount. If 10% moved onto blockchains, the resulting market would be about $16 trillion.

He also said each dollar of assets tokenized or locked within a layer-1 blockchain ecosystem typically creates about $1 in value for that blockchain.

Lee has previously pointed to tokenization and artificial intelligence agents as potential drivers of the next crypto cycle. His earlier discussion connected the trend with the development of digital financial infrastructure.