Fundstrat co-founder and chief investment officer Tom Lee believes that the market is significantly undervaluing Ethereum ( ETH ). In a new interview with the host of the Coinage podcast, Zack Guzman, Lee says that a fair market value for ETH may be as much as $10,000, a more than 299% increase from its current value. Lee says that ETH should have a much higher value because of the market value of the projects that are being built on the layer-1 blockchain, including Circle, the issuer of the second-largest dollar-pegged stablecoin USDC and the euro-pegged Euro Coin ( EURC ). USDC and EURC were initially launched on the Ethereum blockchain. “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… 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.” ETH is trading for $2,502 at time of writing, down 2.9% in the last 24 hours. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Featured Image: Shutterstock/Timofeev Vladimir The post Fundstrat’s Tom Lee Says Ethereum Should Be ‘Worth a Lot More Money,’ Outlines ETH’s Path to $10,000 appeared first on The Daily Hodl .
