BTC-Newswire

Investor Tom Lee Reveals Ethereum Price Target Amid ‘ChatGPT Moment’ of Stablecoins

Press Releases Crypto News DailyHodl Investor Tom Lee Reveals Ethereum Price Target Amid ‘ChatGPT Moment’ of Stablecoins

Fundstrat’s Tom Lee believes that Ethereum (ETH) could soar to a five-figure price as the rise of stablecoins brings new relevance to the world’s leading smart contract platform.

In a new interview with Dierdre Bosa, Lee says that technical analysts at Fundstrat are currently targeting near $5,000 for Ethereum in the next several months.

However, over the longer term, Lee says that ETH could be trading above $10,000 if it reaches similar valuations to Circle, the second-largest stablecoin issuer, which largely relies upon the Ethereum network to power its products.

“Mark Newton, who is head of technical strategy at Fundstrat, has some views on Bitcoin and Ethereum. In the near term, he thinks both have 20% upside from here, so that would be putting Ethereum closer to $3,300.

And he thinks something around $4,500 or $5,000 in the next few months is achievable. That’s a pretty big move for Ethereum, but I think the perspective that someone could have is to realize that Circle trades at around 100 times EBITDA (earnings before interest, taxation, depreciation and amortization), which I think is fair because its scarce and it is one of the best IPOs (initial public offerings) really in several years. But if you applied that metric to the layer-1 Ethereum, it would imply a value per ETH token north of $10,000.

So I think it shows you that if the stablecoin is being valued in the market at a hundred times, that the underlying layer-1, which is really what’s securing those transactions, probably is undervalued.”

Tom Lee also believes that Ethereum is benefiting from the “ChatGPT moment” of stablecoins, as adoption for dollar-pegged crypto assets hit fever-pitch.

“Stablecoins have really exploded because consumers, businesses and banks are really interested in adopting this. The majority of stablecoins are actually transacted on the Ethereum blockchain. And if Treasury Secretary [Scott] Bessent is right, and it goes from a $250 billion market to $2 trillion, that’s exponential demand for Ethereum.”

At time of writing, Ethereum is worth $3,024.

[embedded content]