Fundstrat Global Advisors co-founder Tom Lee said on Tuesday that Ethereum ETH is positioned for a significant breakout as stablecoins create a transformative “ChatGPT moment” for Wall Street and cryptocurrency convergence.
What Happened: Writing on X, Lee noted that Ethereum has gained 22% in the past month despite being down 9% year-to-date. He cited rising demand from stablecoins and Wall Street’s tokenization of real-world assets as key drivers for the world’s second-largest cryptocurrency.
“ETH rangebound since 2021, but the rise of stablecoins and Wall Street tokenizing real-world assets is driving up demand for ETH,” Lee wrote.
Sean Farrell, Fundstrat’s head of digital assets, reported increased transaction activity on Ethereum, according to data from The Block. The network now handles more than 60% of tokenized real-world assets, with major financial institutions like JPMorgan Chase & Co. JPM and Robinhood Markets Inc. HOOD building infrastructure on the platform.
Lee emphasized Ethereum’s role as a technology platform rather than just a digital asset. “Ethereum is like the preferred choice for Wall Street,” he told CNBC last week. “JP Morgan’s stablecoin is built on Ethereum. Robinhood is building their tokenizing business on Ethereum.”
The analyst also highlighted crypto’s leading indicator status for equities, noting that Bitcoin has historically led the S&P 500 by one month.
Why It Matters: Lee connected Ethereum’s prospects to broader market dynamics, noting that small-cap stocks and ETH move in sync. With the Federal Reserve expected to cut rates later in 2025, he sees tailwinds building for risk assets.
“Fed cuts = liquidity rising = positive for risk assets,” Lee wrote.
The analysis comes as Ethereum crossed the key $3,000 resistance level on Tuesday, with its market dominance rising to 10.2%. Cryptocurrency analyst Rekt Capital said Ethereum needs to “convincingly break” 10% market dominance to enter a historically bullish phase.
BitMine Immersion Technologies Inc. BMNR, where Lee serves as chairman, has implemented an Ethereum treasury strategy and raised $250 million to accumulate ETH. The company now holds 163,142 ETH tokens.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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