- Tom Lee likens Ethereum’s tokenization wave to Wall Street’s post-gold standard transformation in 1971.
- About 70% of current asset tokenization efforts are taking place on the Ethereum blockchain, according to Lee.
- Lee projects Ethereum could reclaim its 2021 ETH/BTC ratio, implying a potential price level near $21,000.
Market strategist Tom Lee believes Ethereum could be entering a “supercycle” comparable to Wall Street’s transformation in 1971. Lee said the digital asset’s growth movement shows the structural change that occurred when the U.S. abandoned the gold standard.
He noted that, just as Wall Street rebuilt the financial system around the synthetic dollar in the 1970s, institutions are now reconstructing markets on blockchain networks, with ETH key. According to Lee, about 70% of ongoing tokenization efforts are happening on Ethereum, positioning it as the foundation for a new era in finance.
Institutional Tokenization and ETH’s Role
Lee noted that major financial players, including BlackRock’s Larry Fink and Robinhood, aim to tokenize real-world assets on public blockchains. He said this process represents a modern equivalent of Wall Street’s post-1971 innovation phase, when financial products such as futures and money markets emerged to support the dollar.
The current cycle, Lee explained, is driven by tokenized dollars, stablecoins and expanding toward broader tokenization of assets. He described Ethereum’s programmable structure as key for facilitating these developments, adding that it has become the leading network for institutional blockchain applications.
Ethereum’s Value Outlook and Market Position
Addressing Ethereum’s market potential, Lee said the asset could regain its 2021 ETH/BTC ratio, which would imply a price near $21,000. He characterized the network as undervalued given its growing role in asset tokenization and decentralized finance.
Ethereum’s Layer 1 and Layer 2 ecosystems have shown accelerating activity, primarily through stablecoin transfers and decentralized applications. Lee also emphasized that network growth often leads to price appreciation, suggesting potential for continued strength as on-chain activity expands.
Broader Market Outlook and Crypto Equity Connection
Lee maintained his bullish outlook for both U.S. equities and digital assets through late 2025. He pointed to monetary easing and cleaner market positioning following October’s major liquidation event, the largest in five years.
Despite heavy derivatives unwinding, Bitcoin fell only about 4%, which Lee said demonstrated resilience similar to gold during stress. He added that correlations between cryptocurrencies and equities remain intact, with Bitcoin often leading liquidity shifts that later appear in traditional markets. Ethereum, meanwhile, tends to track smaller-cap equities within the Russell 2000, reinforcing its cyclical alignment with broader risk assets.
According to Lee, this interplay between institutional adoption, monetary policy and network expansion defines Ethereum’s current point. As blockchain-based tokenization grows, he said, Ethereum’s role in global finance continues to deepen, indicating the structural changes reminiscent of the 1970s financial evolution.
