Fundstrat's Tom Lee calls Ethereum one of the most mispriced assets in the world, even after it fell from nearly $5,000 to under $2,000 in six months. He argues tokenization and AI settlement demand could push the network toward trillions in value.
Tom Lee, co-founder of Fundstrat, argues that Ethereum is one of the most mispriced assets in the world, even after the token slid from nearly $5,000 six months ago to under $2,000 today. He built his valuation case around the assets he expects to eventually move on-chain.
The valuation gap Lee sees
Lee built his argument in an interview with Michael van de Poppe published on Monday, framing Ethereum against the markets he thinks it will serve. Gold sits at roughly $22 trillion, global equities exceed $100 trillion, and real estate approaches $300 trillion, and making those assets digital and composable, he argued, runs them through Ethereum.
Against that backdrop he called the network's current size a bargain. According to Benzinga, Lee said: "If Ethereum is at $300 billion, it's grossly undervalued", and he could see it becoming a $1, $2, or even $5 trillion network within the next few years.
He gave three reasons the value should compound: AI agents needing neutral settlement infrastructure no single company controls, tokenization moving trillions of financial assets on-chain, and Ethereum's 11-year track record building institutional trust that newer chains cannot match.
Why the price is lagging
Lee said the weakness is not about fundamentals. The two legs of his thesis, AI integration and tokenization, are simply playing out slower than the market expected. That delay, combined with the broader crypto deleveraging that followed the October 2025 market break, explains the gap between story and price.
He also pointed to confusion around the Ethereum Foundation, which has been streamlining its role. That shift does not lower the network's value, he argued, but it has left holders looking for a clearer institutional signal.
Where Lee sees the cycle turning
Lee told van de Poppe he sees August or October as the likely cycle low, consistent with the four-year cycle pattern that has held across prior bear markets. He compared waiting for confirmation to preparing for a hurricane after it hits, citing gold and Nvidia as assets where most gains compressed into a short window after years of building.
On AI, he put the probability of delegated economic agents making machine-to-machine payments within three years at "pretty close to 100%". That infrastructure, he said, cannot run on centralized systems and points directly to public blockchains.
Source: Benzinga
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