Tom Lee: Ethereum Is Still in a Supercycle, Fundamentals Are Outpacing the Price

Tom Lee, co-founder of Fundstrat Global Advisors, chairman of BitMine, and one of Wall Street’s most prominent crypto bulls, has once again reaffirmed his unwavering optimism about Ethereum. According to him, the world’s second-largest cryptocurrency is in the midst of a “supercycle” in which its fundamentals are outperforming its current market price.

“Ethereum Is Growing Beneath the Surface” In an interview with Morgan Brennan and Jon Fortt on CNBC Overtime, Lee said that Ethereum’s network is seeing surging activity on both Layer 1 and Layer 2, driven primarily by strong demand for stablecoins. “Bitcoin has proven to be a pretty solid store of value, much like gold,” Lee said. “The same goes for Ethereum. There’s massive growth and activity across L1 and L2 because of stablecoins — it just isn’t reflected in the price yet. It takes time.” According to Lee, Ethereum’s fundamentals are recovering steadily, and that rebound should become visible in prices toward the end of the year.

In a post on X, he added that while price usually leads fundamentals, there are times when fundamentals lead the price upward. He pointed to the surging transaction volumes and record-high stablecoin usage on Ethereum as proof that the next major growth phase could be imminent.

Ethereum’s Long-Term Strategy Back in September, Lee described Ethereum as part of a macro supercycle that could define the next decade, driven by institutional adoption and the tokenization of real-world assets (RWA) — a trend where traditional assets such as bonds or real estate are being transferred onto blockchain. During the recent market downturn, Lee’s company BitMine demonstrated its confidence by going on a buying spree, adding even more ETH to its treasury.

BitMine now holds 3,236,014 ETH, making it the world’s largest corporate Ethereum reserve.

Critics Remain Skeptical Not everyone shares Lee’s enthusiasm. Andrew Kang, co-founder of Mechanism Capital, dismissed Lee’s “supercycle” thesis as “financially illiterate,” arguing that Ethereum needs major organizational reforms or it will continue to underperform. Meanwhile, long-time crypto skeptic Peter Schiff reacted to the October sell-off by bluntly advising investors to “get out of Ethereum now.” Critics also note that Ethereum’s former dominance in the stablecoin market has been eroded by faster and cheaper blockchains like Solana, where settlement volumes with stablecoins have surged sharply in 2025.

Despite Criticism, Ethereum Is Rebounding Despite the skepticism, Ethereum has risen by more than 3% in the past 24 hours and is currently trading above $4,240, signaling renewed investor confidence and growing momentum as the year progresses.

Kiyosaki: “ETH at $4,000 Is Like Bitcoin at $4,000” Best-selling author of Rich Dad, Poor Dad, Robert Kiyosaki, echoed the bullish sentiment — comparing Ethereum’s current position to Bitcoin’s early rise: “People who buy ETHEREUM at $4,000 today will be like those who bought Bitcoin at $4,000. The old thinkers will be left behind — the GAP will become a GRAND CANYON,” he wrote on X.

Summary While Tom Lee continues to bet on Ethereum’s fundamentals and its long-term supercycle, critics warn that competition and high fees could limit its upside.

Yet the data shows that network activity is climbing, investor interest is returning, and Ethereum remains one of the most influential pillars of the crypto market.

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