Is Ethereum shaping up to be the next big thing?
Bitcoin still gets all of the attention, especially with the dash to add the leading crypto-asset to balance sheets. We see a number of corporations loading up on Bitcoin, seeking to solidify their asset holdings.
This is spreading to governments as different nations along with local governments make similar choices.
But what about Ethereum?
We are seeing the second leading crypto-asset get some love. That said, it is far from the fevered pitch of Bitcoin. Will that always hold true?
In this article we dig into some of the comments made by Tom Lee, a noted Ethereum advocate who is adding ETH to the balance sheet of Bitmine.
Ethereum: "The Macro Trade of the Next Decade"
Lee believes Ethereum will be the "biggest macro trade for the next decade". Whereas Bitcoin acts as a store of value, perhaps replacing gold.
Many want to pit Bitcoin versus Ethereum. There is are a lot of maxis digging in on both sides. Lee isn't one of them. He sees different use cases for each.
With Ethereum, there is a more practical reason why adoption is almost guaranteed in Lee's opinion.
“So we’re storing information, and we’re tokenizing businesses…and the dollar….Stablecoins are now actually big buyers of treasuries collectively. You don’t have to worry about deficits because stablecoins will buy the debt. That is the ChatGPT moment for crypto because what’s happened is that the first killer app for crypto has emerged that is now seeing widespread adoption, which is stablecoins,” he said.
I agree that the impact of the stablecoin cannot be understated. He is also correct in the fact that Ethereum is the first destination for almost all that are being produced. The passage of the GENIUS Act means that most major banks are going to bring out their own coin.
The early indications are, based upon the activities of Wall Street firms involved, that Ethereum is the chain of choice.
JPMorgan, Bank of America, and Citigroup are not likely to head to Polygon. Of course, wrapped versions could end up there but Ethereum will be the home.
ChatGPT Moment
When will the world, if it does, wake up to this? In other words, where is the ChatGPT moment?
Lee addresses this in comparison to Bitcoin.
“In 2017, when I first wrote about Bitcoin, I saw this as the time when Wall Street would eventually come to recognize that Bitcoin is important….Well, I think Ethereum is having its 2017 moment now because now is the time that Wall Street will take tokenization seriously, and it’s taking place on Ethereum. I do think it is the biggest macro trade for the next decade,” Lee remarked.
We obviously are ill-advised to claim the Bitcoin ChatGPT moment was in 2017. There was still a lot of uncertainty back then. However, 7 years later, as crypto became a Presidential campaign topic, things changed.
2025 certainly is a breakout year for Bitcoin with regards to the acceptance.
The same is not true for Ethereum, at this moment. Naturally, this is the point Lee was making. We are going to be looking at a couple years before we see the major impact.
That said, with the runway clear for stablecoins, at least in the United States, and the age of tokenizing real world assets quickly approaching, it is valid to ask where all of this is going to take place.
Many still point to alternative chains such as Solana. It is something that cannot be discounted since it, indeed, could evolve in that direction. Nevertheless, we have to keep in mind that, in the digital world, the leader is tough to knock off.
Today, when it comes to smart contract networks, Ethereum is still the top banana. If we couple this with Lee's belief that institutions, with their clout, are heading down this path, we can see the case he is making.
Lee ties this to the macro economy. It could be a valid point if we surmise how the economy will look in 10-20 years. Many are forecasting that digitization will be the overwhelming component of economic output. Seeing this come to fruition means that networks are crucial.
Which brings us back to where is this forming. For Lee, he views Ethereum as the answer.