Tom Lee’s Ethereum Thesis Dismantled Amid Flawed Assumptions | US Crypto News
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Grab a espresso because the Ethereum (ETH) debate heats up once more with daring claims from Wall Street voices assembly sharp rebuttals from crypto-native researchers. At stake is whether or not Ethereum’s core narratives, together with stablecoin adoption, digital oil comparisons, and institutional demand, really justify the asset’s lofty long-term valuation.
Crypto News of the Day: Kang Challenges Core Arguments Behind Bullish ETH Outlook
Ethereum’s long-term valuation case is dealing with sharp criticism after crypto investor and DeFi researcher Andrew Kang tore aside Tom Lee’s newest ETH thesis.
Tom Lee’s thesis on ETH doubtlessly doing 100x facilities on it coming into a macro tremendous cycle. The Fundstrat co-founder and BitMine Chairman recognized Wall Street adoption, AI integration, and BitMine’s standing as a compliant, yield-generating blockchain as key drivers.
He sees an opportunity of ETH flipping Bitcoin’s market cap, with near-term targets of $4,000 to $15,000 by 2025. Lee anticipates as much as $20,000 or extra for the longer-term upside primarily based on historic ratios and institutional shopping for.
Kang labeled the evaluation as one of the crucial retarded mixtures of financially illiterate arguments he has seen from a high-profile market voice.
At the center of Kang’s rebuttal is the declare that stablecoin and real-world asset (RWA) adoption won’t immediately translate into significant income for Ethereum.
“Since 2020, tokenized asset worth and stablecoin transaction volumes have elevated 100-1000x…Fees are virtually on the identical degree as in 2020,” Kang noted.
He pointed to a number of causes for this disconnect, together with extra environment friendly Ethereum upgrades, migration of stablecoin exercise to different blockchains, and the tokenization of low-velocity belongings that generate minimal charges.
For Kang, the beneficiaries of tokenization will not be Ethereum however faster-moving rivals.
“Solana, Arbitrum, and Tempo are seeing a lot of the early massive wins,” he wrote, highlighting Tether’s latest determination to develop USDT exercise onto new chains like Plasma and Stable.
Lee’s characterization of ETH as digital oil additionally got here below hearth. Kang countered that oil is a commodity whose inflation-adjusted worth has stayed range-bound for a century.
“ETH could possibly be seen as a commodity, however that’s not bullish,” he argued.
Institutional Demand and Technicals Fail to Convince
Another cornerstone of Lee’s bullish case is that establishments will accumulate ETH and stake it of their tokenization strategies.
Kang dismissed this outright, observing that no main monetary establishments have purchased ETH for his or her steadiness sheets or publicly introduced plans to take action.
“Do banks top off on barrels of gasoline as a result of they regularly pay for vitality? No. They simply pay for it when they should,” the analyst posed, drawing parallels.
Andrew Kang was equally scathing about Lee’s projection that ETH may someday be price as a lot as all the monetary infrastructure sector.
According to the analyst, it is a “basic misunderstanding of worth accrual and simply pure delusion.”
On the technical entrance, Kang argued that Ethereum’s chart tells a unique story than Lee suggests. He likened its worth motion to crude oil.
ETH has lately examined the highest of a spread with out breaking out, leaving the opportunity of a chronic $1,000–$4,800 buying and selling hall.
“The strongest commentary is that Ethereum is in a multi-year vary,” he mentioned.
In Kang’s view, Ethereum’s valuation at this time rests extra on “monetary illiteracy” and broad macro liquidity than fundamentals.
He warned that with out main organizational change, ETH dangers indefinite underperformance towards rivals and market expectations.
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Here’s a abstract of extra US crypto information to comply with at this time:
- Arthur Hayes fuels Tether IPO speculations amid $500 billion valuation buzz.
- Peter Brandt advises Gen Z on Bitcoin, actual property, and SPY investments.
- Analyst shares four rules for thriving in today’s altcoin market.
- XRP faces headwinds: Can it reclaim $3 earlier than September ends?
- Quiet earlier than the storm? Bitcoin’s volatility sinks to a 22-month low.
- Binance adds Plasma (XPL) to the HODLer Airdrop page. What ought to customers know?
- Japan, the US, and South Korea unite to strengthen cybersecurity and AI.
- Coinbase, Cloudflare launch x402 Foundation for AI funds.
Crypto Equities Pre-Market Overview
| Company | At the Close of September 23 | Pre-Market Overview |
| Strategy (MSTR) | $327.78 | $331.56 (+1.15%) |
| Coinbase (COIN) | $320.07 | $323.80 (+1.17%) |
| Galaxy Digital Holdings (GLXY) | $33.14 | $33.78 (+1.93%) |
| MARA Holdings (MARA) | $17.71 | $18.03 (+1.81%) |
| Riot Platforms (RIOT) | $17.07 | $17.73 (+3.86%) |
| Core Scientific (CORZ) | $17.00 | $17.00 (0.00%) |
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