Fundstrat strategist Tom Lee said at the Consensus conference in Miami that Ethereum still looks undervalued despite its growing importance in digital finance. In his view, Ethereum could become one of the biggest winners in the next crypto market upcycle as demand rises for blockchain-based payment, settlement, and financial infrastructure.
Lee argued that the recent recovery across digital assets suggests the crypto downturn may be ending, creating a stronger long-term backdrop for Ethereum. With ETH trading around $2,300, he described the asset as cheap relative to the role it may play in the future of onchain finance.
Bitcoin valuation and tokenization thesis shape the upside case
A key part of Lee’s argument is Ethereum’s historical valuation relationship with Bitcoin. He noted that ETH has traded at an average ratio of about 0.048 versus BTC, while that ratio climbed to roughly 0.087 during the 2021 bull market. Using his own fair value estimate of $250,000 for Bitcoin, Lee said Ethereum could ultimately move toward $22,000 if prior valuation patterns return.
He also pointed to Ethereum’s long consolidation phase, noting that the asset has spent nearly five years trading in a broad range since its last major rally. According to Lee, the next leg higher could be supported by two structural trends: tokenization and agentic AI. He cited industry expectations that tokenized real-world assets may eventually scale into a market worth hundreds of trillions of dollars, implying a large future need for blockchain issuance and settlement rails.
Lee further said stablecoin transaction volumes have already surpassed Visa’s payment volumes, which he sees as evidence that blockchain finance is moving into mainstream use. If that trend continues, Ethereum stands to benefit because of its established role in decentralized finance, smart contracts, and tokenized asset activity.
AI agents may need decentralized payment and settlement rails
Another major theme in Lee’s presentation was the link between artificial intelligence and blockchain infrastructure. He argued that autonomous AI systems will need digital payment networks that can function without traditional banks or centralized intermediaries.
As Lee put it, “agents are going to need money.” In practical terms, that means future AI-driven economic activity may require open and programmable settlement layers capable of handling transactions natively onchain. He presented Ethereum as a likely candidate for that role because of its mature ecosystem and central position across multiple crypto financial applications.
BitMine’s Ethereum strategy highlights supply concentration and staking yield
Lee also referenced BitMine’s Ethereum strategy, saying the company now controls more than 4% of Ethereum’s circulating supply. He added that roughly 85% of those holdings are staked, generating more than $300 million in annualized staking revenue. According to him, BitMine originally expected it would take years to accumulate 5% of ETH supply, but reached its current position much faster than anticipated.
He described Ethereum as a scarce settlement layer and emphasized that the network has never had downtime. Lee also said Ethereum’s supply became effectively deflationary during BitMine’s accumulation period. If institutional demand continues to rise, he believes that combination of constrained supply and expanding use cases could provide further support for ETH prices.
Overall, Lee’s outlook is built on a structural thesis rather than a short-term trading call. The main pillars are Bitcoin-relative valuation, growth in tokenized assets, rising stablecoin activity, and the possibility that AI agents will increasingly rely on decentralized financial infrastructure. Still, the $22,000 scenario remains Lee’s market view rather than a certainty, and its realization would depend on broader adoption trends and future market conditions.