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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 long run is tough to foretell. However an important ETH help and realized worth for accumulation addresses was at $2.8K.
A VC companion has projected that the Ethereum [ETH] worth might 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 companion at Mechanism Capital, known as Lee’s projection ‘retarded.’
He downplayed Lee’s optimistic ETH outlook based mostly on tokenization and stablecoin narratives.
He added that the tokenized market has grown, 1000x since 2020, however day by day transaction charges on Ethereum have remained at a five-year low.
“Tom’s argument essentially misunderstands how worth accrual works and will lead you to consider that charges would scale proportionally, however the truth is, they’re virtually on the similar degree of 2020.”
Supply: X
Banks received’t purchase ETH, says Kang
Kang added that giant 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 once 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.
The truth is, this new demand line lifted ETH from $1.5K to almost $5K in 2025, a couple of 200% rally. Therefore, extra demand from such establishments might increase the ecosystem.
However Kang was proper on one factor – different blockchains will seize the tokenization increase. The truth is, the rising competition from stablecoin-focused chains with extra distribution channels might eat into ETH’s market share.
Even so, it could be too early for the bearish guess for ETH. The truth is, earlier within the yr, Kang projected that ETH might slip under $1K; as an alternative, the altcoin rallied 3x.
That stated, ETH accumulation addresses have hit a file excessive of 27.3 million ETH. Coupled with a looming supply crunch, the backdrop may very well be optimistic for ETH. This might increase the percentages for a $5K worth goal.
Supply: CryptoQuant
Nonetheless, within the case of an excessive bearish situation as projected by Kang, the important thing help to look at could be $2.8K.
It doubled because the realized worth for accumulation addresses and stopped the H1 2025 pullback.
Supply: CryptoQuant
