Fundstrat strategist Tom Lee says Ethereum remains undervalued despite its growing role in digital finance. Speaking at the Consensus conference in Miami, He said Ethereum could emerge as one of the biggest winners of the next crypto market rally, as artificial intelligence and tokenization increase demand for blockchain-based financial systems.
As per Lee, the recent recovery in digital assets signals the end of the crypto downturn and positions Ethereum for long-term growth.
“At the current price around $2,300, Ethereum is cheap,” Lee said during his presentation.
Lee tied Ethereum’s outlook closely to the expansion of tokenized assets, stablecoins, and AI-powered digital agents, which he said will increasingly rely on decentralized payment and settlement networks.
Ethereum has historically traded at an average ratio of about 0.048 against Bitcoin, rising to roughly 0.087 during the 2021 crypto bull market.
Using his projected Bitcoin fair value of $250,000, Lee said Ethereum could eventually rise toward $22,000 if previous valuation patterns return.
He also pointed to Ethereum’s long consolidation period, saying the cryptocurrency has spent nearly five years trading within a broad range after its last major rally.
“I think this third consolidation is going to be pulled up because of tokenization and agentic AI,” Lee said.
The Fundstrat strategist cited industry estimates projecting that tokenized real-world assets could eventually grow into a market worth hundreds of trillions of dollars.
Lee added that stablecoin transaction volumes have already surpassed Visa payment volumes, which he described as a sign that blockchain finance is moving into mainstream usage.
A major part of Lee’s presentation focused on the connection between artificial intelligence and blockchain infrastructure.
He said autonomous AI systems will require digital payment networks capable of operating without traditional banks or centralized intermediaries.
“Agents are going to need money,” Lee said, referring to future AI-driven economic activity.
Lee described Ethereum as a likely settlement layer for those systems because of its role in decentralized finance, smart contracts, and tokenized asset markets.
Lee also highlighted the Ethereum strategy of BitMine, which he said now controls more than 4% of Ethereum’s circulating supply.
According to Lee, the company stakes about 85% of its Ethereum holdings and generates more than $300 million in annualized staking revenue.
He said BitMine initially expected it would take several years to accumulate 5% of Ethereum’s supply, but reached its current position much faster than anticipated.
“Ethereum is a scarce settlement layer,” Lee said. “It has never had downtime.”
Lee added that Ethereum’s supply has turned effectively deflationary during BitMine’s accumulation period, a trend he believes could support prices if institutional demand continues to rise.
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