- Ethereum (ETH) is potentially undervalued at current prices, with analysts like Tom Lee predicting that the projected 15x surge in the stablecoin market could drive exponential growth in ETH network usage and fees.
- On-chain metrics such as the MVRV Z-score further suggest ETH has significant room for appreciation, with historical trends pointing to potential price peaks between $4.8K and $6.4K.
Ethereum (ETH), the world’s second-largest cryptocurrency, could be poised for significant upside — thanks to a potential boom in the stablecoin market.
Fundstrat’s Chief Analyst Tom Lee recently suggested that ETH might be grossly undervalued at current price levels around $2,500. His remarks follow U.S. Treasury Secretary Scott Bessent’s projection that the stablecoin market could surge 15x to hit $3.7 trillion by 2030 — a growth trajectory that would likely translate into exponential usage of the Ethereum network.
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Lee explained, “USDT and USDC represent 25%-30% of Ethereum network fees today. A 15x rise would equal exponential growth in ETH network usage. Ethereum is a direct beneficiary of the GENIUS Act and the coming surge in stablecoins.”
So far, Ethereum’s price has yet to respond meaningfully to the passing of the GENIUS Act, which aims to provide clear regulatory support for stablecoins. Instead, market focus has been distracted by escalating geopolitical tensions between Israel and Iran. Meanwhile, Circle’s CRCL token and Coinbase (COIN) stock saw immediate double-digit gains in response to the Act.
Yet the underlying data supports Lee’s bullish thesis. According to DeFiLlama, stablecoins — particularly those issued by Tether, Circle, and Ethena — are now the largest contributors to Ethereum network fees, generating over $700 million in the past 30 days alone.
If the stablecoin market indeed expands to $3.7 trillion, Ethereum could see a surge in fee revenue and network activity, further strengthening its long-term value proposition.
On-chain metrics also suggest ETH may be undervalued. Its current MVRV Z-score, an indicator of relative value, sits at just 0.4. Historically, ETH has tended to peak when the Z-score approaches 1.5–2, implying substantial room for future price appreciation. Analysts predict ETH could climb to $4.8K or even $6.4K if historical cycles repeat.
In short, Ethereum’s strong correlation with the growing stablecoin market — combined with favorable on-chain metrics — suggests the asset may have considerable upside potential in the months and years ahead.