- Lee van Fundstrat believes that ETH could benefit from the expected stablecoin -boom
- Indicators on chains suggested that ETH was undervalued at $ 2.5k
Ethereum [ETH] Could be roughly undervalued at press prices if the Stablecoin market explodes to $ 3.7 trillion in 2030. This was the evaluation that was implied and shared by the most important analyst Tom Lee from Fundstrat.
He responded to the American Minister of Treasury Scott Bessent’s 15x Stablecoin Surge Target by 2030. Lee noted“
“USDT, USDC today represents 25% -30% of the Ethereum network costs $ CRCL. A 15x increase in equal exponential growth in ETH network use. Ethereum is a direct beneficiary of Genius Act and upcoming increase in stablecoins.”
Is Eth the Stablecoin beta?
Here it is worth pointing out that there was no significant and immediate price reaction on the charts of ETH after the genius law had been adopted this week. In fact, the direct beneficiaries of the Circle’s CRCL and Coinbase’s coin bill as both were pumped by double digits.
Perhaps the response of ETH was slow because the wider market was aimed at the geopolitical tensions between Israel and Iran.
That said, Lee’s statement about the 30% dominance of Stablecoin in Ethereum network costs is true. In the last 30 days of the trade, Circle and Tether contributed more than $ 700 million to Ethereum network costs.
In fact, the top three of contributors to the Tether, Circle and Ethena chain – all Stablecoin spending.
Source: Defillama
Explosive 15x Stabilecoin growthFrom the current market size of $ 250 billion, the chain could expose to massive network traction in terms of reimbursements.
That said, is it actively undervalued at the time price of his press? Well, according to his MVRV Z score, ETH can be relatively cheap for a price of $ 2.5k.
In the current cycle in particular, ETH would peak at $ 4K if the indicator tags 2 or 1.5 on the graphs.
Source: Glassnode
Assuming that the trend continues the rest of the cycle, the current reading of 0.4 means that there is enough room for growth before ETH touches a local price peak.
In fact, the MVRV prize tires also revealed that ETH could peak by around $ 4.8k or $ 6.4k as historical trends.
Source: Glassnode