‘Fees are flat’ – VC doubts Tom Lee’s $60K Ethereum outlook
Journalist
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Key Takeaways
Why does a VC consider Lee’s bullish projection is ‘retarted’?
Andrew Kang argued that the tokenized market has already exploded 1000x, however hasn’t boosted ETH
Will ETH drop to $1K per Kang’s projection?
The longer term is difficult to foretell. However an important ETH assist and realized value for accumulation addresses was at $2.8K.
A VC accomplice has projected that the Ethereum [ETH] value may stay range-bound between $1K-$4K for an prolonged interval, discrediting Fundstrat CIO Tom Lee’s bullish thesis and $60K price target.
In an X (previously Twitter) post on the twenty fourth of September, Andrew Kang, a accomplice at Mechanism Capital, known as Lee’s projection ‘retarded.’
He downplayed Lee’s optimistic ETH outlook primarily based on tokenization and stablecoin narratives.
He added that the tokenized market has grown, 1000x since 2020, however every day transaction charges on Ethereum have remained at a five-year low.
“Tom’s argument essentially misunderstands how worth accrual works and should lead you to consider that charges would scale proportionally, however in actual fact, they’re virtually on the identical stage of 2020.”
Supply: X
Banks received’t purchase ETH, says Kang
Kang added that enormous banks and establishments haven’t purchased ETH and received’t make a bid sooner or later, as Lee expects. He drew parallels with oil, including that banks solely ‘pay for it after they want it.’
For the unfamiliar, crypto treasury corporations led by Lee’s BitMine have accumulated $21 billion price of the ETH, partly pushed by the anticipated stablecoin and tokenization increase.
Actually, this new demand line lifted ETH from $1.5K to just about $5K in 2025, a few 200% rally. Therefore, extra demand from such establishments may increase the ecosystem.
However Kang was proper on one factor – different blockchains will seize the tokenization increase. Actually, the rising competitors from stablecoin-focused chains with extra distribution channels may eat into ETH’s market share.
Even so, it might be too early for the bearish wager for ETH. Actually, earlier within the 12 months, Kang projected that ETH may slip under $1K; as a substitute, the altcoin rallied 3x.
That mentioned, ETH accumulation addresses have hit a report excessive of 27.3 million ETH. Coupled with a looming provide crunch, the backdrop could possibly be optimistic for ETH. This might increase the percentages for a $5K value goal.
Supply: CryptoQuant
Nonetheless, within the case of an excessive bearish situation as projected by Kang, the important thing assist to observe can be $2.8K.
It doubled because the realized value for accumulation addresses and stopped the H1 2025 pullback.
Supply: CryptoQuant
