Ethereum is now gaining widespread momentum as one of the revolutionary blockchains that has the power to “reboot” the world. Fundstrat’s Tom Lee is betting big on Ethereum’s tokenization capabilities, believing the asset remains undervalued and on the verge of a positive price explosion in the near future.
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What Ethereum Can Really Be: Fundstrat’s Tom Lee Explains
Lee later compared the blockchain to one of the most classic Wall Street moments from 1971, saying how Ethereum is slowly embracing tokenization stories.
“But Ethereum, as we’ve written about, is probably in a supercycle, similar to what happened to Wall Street in 1971. Because in 1971, the US pulled off the gold standard. So the dollar actually became synthetic, completely synthetic. Wall Street stepped in to make sure the dollar remained the reserve currency. So they built futures, CDs, and even 1-year, because it lasted 1 year, and even money. Dollar was only 27% of GDP, it became 53% of central bank reserves and 80% of all financial market rates.”
Lee was quick to emphasize how BlackRock’s Larry Fink and Robinhood want to tokenize everything, an idea in which ETH will play a significant role.
Everything on the Blockchain: ETH Torch Bearer Moment
With the US government looking to promote stablecoin development to assert dollar dominance, ETH has now become a central entity that gravitates close to this narrative. Many experts believe that ETH could become a central blockchain at the forefront of this change and at the same time reflect Lee’s thoughts on ETH. In addition to this, Lee shared how he believes such a value proposition can help Ethereum reach $21K in the near future.
“So Ethereum is experiencing the same moment from 1971 when Wall Street is rebuilding everything into a blockchain, which we think Ethereum will be. Ethereum could recover its Bitcoin, Ethereum quotas and 2021 highs; that would put Ethereum at about 21,000 per token. If we bet that, we benefit from the power loss.”