Wall Street is beginning to show increasing interest in Ethereum, which may have a significant impact on the market value of this cryptocurrency.
Why Wall Street Is Buying Ethereum?
According to Tom Lee, Managing Partner at FSInsight, a variety of factors contribute to institutional investors' growing interest in Ethereum. These include:
* Legal clarity in the U.S.: ETH is regarded as the most compliant smart contract platform. * Impeccable uptime: Ethereum has experienced zero downtime in its decade-long history. * Network effect: Major institutions like JPMorgan and Robinhood are already utilizing or tokenizing assets on Ethereum.
"Wall Street is running to ETH," said Lee, highlighting that Ethereum's narrative is getting stronger.
Wall Street Will Stake ETH
Lee emphasized that Wall Street is not only using Ethereum but will stake ETH to participate in the network’s value layer. This trend aligns with a broader movement where real-world assets (RWAs) are being tokenized on Ethereum's platform.
> "As Wall Street financializes the world onto the blockchain, they will stake ETH to be involved in Ethereum’s growth," stated Lee.
Is Ethereum Price Undervalued?
Lee pointed to the ETH/BTC ratio as an essential indicator. A year ago, the ratio was at 0.0500. With Bitcoin currently around $114,000, this implies an ETH valuation of approximately $5,707, significantly higher than its current market price.
> "This argues the ETH/BTC ratio should recover," Lee stated, emphasizing the disconnection between current pricing and Ethereum's growing market dominance.
According to predictions, if Ethereum becomes the foundational layer for financial markets, its price could reach $60,000 or more. This assumption highly depends on the ongoing adaptation of institutional investors towards Ethereum.
