\n<\/p>\n
\n\t\t\t\t\t\t\t\t\tLee pointed to the steady and visible tokenization progress this year, with the majority on Ethereum, as a reason to stay patient.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Fundstrat\u2019s Tom Lee believes Ethereum\u2019s prolonged price weakness is a reflection of impatient investors rather than deteriorating fundamentals.<\/p>\n
Despite mounting losses and renewed pressure around $2,000, the investor says developments in the Ethereum ecosystem justify a longer-term bullish outlook.<\/p>\n
In a November 10 post on X, Lee acknowledged<\/a> that ETH\u2019s sluggish performance was disappointing, but he largely attributed that to market impatience. According to him, investors are not appreciating the many developments that are taking place beneath the surface, especially the tokenization of traditional assets.<\/p>\n The Fundstrat founder pointed to what he described as steady and visible progress toward a tokenization supercycle in 2026, with the \u201cvast majority\u201d of it happening on Ethereum. In addition, he pushed back on the idea that AI was \u201cconsuming all incremental capital,\u201d which might otherwise have found its way into crypto.<\/p>\n His optimism also drew on Vitalik Buterin\u2019s discussion of ETH as a store of value. Yesterday, as CryptoPotato<\/em> reported, the Ethereum co-founder questioned<\/a> whether fee burning provides a reliable basis for valuing the world\u2019s second-largest cryptocurrency, and he argued that the model depends on assumptions that the network\u2019s historical activity did not meet consistently. He kickstarted this debate at the recently concluded Devcon 8 event in Mumbai, where he declared:<\/p>\n \u201cI\u2019ve finally made up my mind, ETH is a store of value, ETH is money.\u201d<\/p>\n<\/blockquote>\n According to Lee, Buterin\u2019s declaration represents a \u201cseismic shift\u201d that will clarify how the token captures value in the coming cycle, in which tokenization and artificial intelligence will feature greatly. The aforementioned developments, in his opinion, are reasons for Ethereum holders to be optimistic, especially since, as he said, the \u201ccrypto bull market just started.\u201d<\/p>\n Lee\u2019s positivity notwithstanding, CoinGecko data at the time of writing showed ETH trading near $2,100, down by less than 1% in 24 hours but recording much bigger dips of 6% and 14% across one and two weeks, respectively. The picture is no different in the last 30 days, with the cryptocurrency losing almost 16% of its value in that time as well as being nearly 42% lower than where it was one year ago.<\/p>\n But that hasn\u2019t stopped Bitmine, where Lee serves as chairman, from piling up the asset. It recently bought<\/a> an additional 9,587 ETH to bring its holdings to over 6 million tokens, which is just under 5% of its total supply. The company also reported that 5.2 million of those coins were staked, although its seven-day staking yield fell to 2.65% from 3.03% a week earlier.<\/p>\n\n
How Ethereum Is Faring Right Now<\/h2>\n
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