- Tom Lee claims Ethereum is undervalued; argues $10,000 ETH is justified—300% upside—using Circle’s 100x EBITDA valuation as benchmark.
- Layer-1 blockchains like ETH deserve higher multiples than apps built on them (e.g., Circle), yet trade below fair value currently.
Fundstrat co-founder Tom Lee states Ethereum trades below its potential value. In a recent interview, Lee proposed ETH could reasonably reach $10,000. This figure represents a nearly 300% increase from current prices.
“I’ll just give you something simple to think about… Circle, which has been a very successful IPO (initial public offering), and it’s been the most successful IPO in the last few years, and it’s crypto. Crypto has been one of the best equities, and now the best IPOs. But Circle trades at around 100 times EBITDA (earnings before interest, taxes, depreciation and amortization). A 1% yield or a 1% EBITDA yield is a pretty sizable multiple. But stablecoins really operate off a layer-1. A lot of Circle operates off Ethereum. And if you look at the tech stack, typically, the more you get into that layer-1 level, the higher the multiple should be for the business, because it actually benefits from the multiple applications sitting on top of it…
Lee bases this view on comparative business valuations. He cites Circle’s initial public offering as a reference point. Circle issues the USDC and EURC stablecoins primarily on Ethereum. The company trades at approximately 100 times its EBITDA. This valuation reflects investor confidence in stablecoin operations.
Lee contends layer-1 blockchains like Ethereum warrant higher multiples than applications built atop them. He explains: “” Ethereum’s infrastructure supports numerous projects including Circle’s stablecoins. This foundational role suggests Ethereum itself holds greater inherent value than currently recognized.
“” Lee questions, “” He implies Ethereum’s current market price fails to reflect this structural advantage. Growing asset tokenization could further expose this discrepancy.
On that same metric, Ethereum should have a much higher multiple… Ethereum would be very undervalued if you were looking at Circle relative to layer-1. So Ethereum probably could go to $10,000 or something. If the world suddenly realized we’re going to tokenize more things, and these tokenized assets, like tokenized dollars, trade at 100 times EBITDA, what should the blockchain be valued at? ETH should maybe be worth a lot more money.”
Lee’s analysis assumes broader market recognition of Ethereum’s role. Wider adoption of tokenized real-world assets might drive reappraisal. The $10,000 estimate presumes investors will value Ethereum’s base layer similarly to successful applications it enables.
Ethereum (ETH) is trading at $2,486.60 USDT, reflecting a sharp −4.04% daily decline, extending from a weekly rally of +2.97%. Over the past month, ETH is down −4.08%, and year-to-date losses now stand at −25.47%. Over the past 12 months, ETH has lost −24.51%, confirming that the asset remains in a multi-month corrective structure despite periods of short-term bullish relief.
Technically, ETH is consolidating below a key resistance band of $2,600–$2,650, having rejected from this range after a short squeeze bounce off the $2,100 level. The current retracement has brought price back into the $2,470–$2,500 range, a former support now acting as an inflection point.
ETHNews analysts are closely watching whether Ethereum can defend $2,450, as a breakdown would reintroduce bearish pressure with targets near $2,300–$2,200. Multiple chartists have identified both bullish flag formations and cup-and-handle patterns, but confirmation remains absent amid declining volume and RSI divergence.
On the news front, Ethereum continues to attract fundamental attention. According to ETHNews, Ethereum Foundation executives revealed the next phase of ETH’s comeback strategy, emphasizing mainstream adoption and DeFi integration via scalability upgrades and rollup dominance.
Concurrently, the EthCC side events in Paris have drawn considerable developer momentum, with sessions focusing on stablecoins, modular Layer-2 architecture, and Telegram-based mini app integrations. Sentiment from these gatherings remains cautiously bullish, but real traction is expected to depend on ETH Layer-2 performance in Q3.
Meanwhile, market participants are debating whether ETH’s current levels are a healthy consolidation or a topping structure. According to ETHNews, Ethereum remains technically bullish on higher timeframes, yet vulnerable to BTC-led macro volatility.
Whale monitoring data also shows increased open interest and futures positioning—suggesting that traders are overleveraging bullish bets even as spot inflows decline, increasing the risk of liquidation cascades if ETH fails to hold current levels.
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