Ethereum (ETH) may be sitting on the edge of a massive valuation surge, according to leading market analysts, with strong signals pointing to a dramatic increase in demand fueled by the stablecoin sector. At press time, ETH was trading around $2,500—yet according to Fundstrat’s Chief Analyst Tom Lee, that figure may not reflect Ethereum’s full potential, especially as stablecoins like USDT and USDC prepare to expand their reach.
Lee’s bullish stance comes after U.S. Treasury Secretary Scott Bessent projected a staggering 15x expansion in the stablecoin market by 2030, predicting it could balloon from its current $250 billion to a colossal $3.7 trillion. If this happens, Ethereum—home to the majority of the stablecoin ecosystem—stands to benefit in a significant way.
Lee emphasized that currently, stablecoins such as Tether (USDT) and USD Coin (USDC) already account for 25% to 30% of Ethereum’s total network fees. That figure underlines how tightly Ethereum’s utility is interlinked with stablecoin transactions. In his words, “A 15x rise equals exponential growth in ETH network usage. Ethereum is a direct beneficiary of the GENIUS Act and the coming surge in stablecoins.”
Despite the GENIUS Act’s recent passage, Ethereum’s price action has yet to reflect the potentially transformative implications. Instead, market focus remained on geopolitical concerns, particularly rising tensions between Israel and Iran, which may have distracted investors from the longer-term implications of the legislation. Immediate price action favored Circle’s CRCL token and Coinbase’s stock (COIN), both of which saw double-digit gains.
Still, Ethereum’s fundamentals tell a different story. Data from DeFiLlama shows that stablecoin issuers are dominating network activity. In the last 30 days alone, Circle and Tether have contributed over $700 million in Ethereum network fees. Ethena, another rising stablecoin issuer, also ranks among the top fee payers.
This fee generation is a powerful driver of Ethereum’s value proposition. As stablecoin use expands, Ethereum’s role as the base layer for these assets could grow substantially, driving higher demand for ETH tokens, which are needed to pay for transactions and smart contract executions.
On the valuation front, Ethereum appears to be undervalued based on multiple on-chain metrics. According to Glassnode’s MVRV Z-score—a model that compares market value to realized value—ETH’s current reading of 0.4 suggests the asset is still in an accumulation zone. In previous cycles, readings above 1.5 have aligned with local price tops, while lows near zero have typically marked strong buying opportunities.
If this cycle plays out similarly to past ones, Ethereum could rise significantly from current levels. MVRV-based pricing bands indicate possible price peaks around $4,800 or even $6,400, assuming historical performance trends repeat. This represents a potential upside of nearly 2x to 3x from current levels, depending on broader market conditions and institutional inflows.
Given Ethereum’s dominant role in powering the stablecoin ecosystem, many investors are starting to view ETH as a kind of “stablecoin beta” asset—one that mirrors the growth and utility expansion of stablecoins themselves. As new regulatory clarity and demand from both retail and institutional investors push stablecoin adoption higher, Ethereum could emerge as one of the biggest long-term winners.
In the short term, ETH’s price may continue to face headwinds due to macroeconomic uncertainty and risk-off sentiment. But in the longer term, all signs are pointing to a strong accumulation phase that could lead to significant upside if stablecoins truly scale to multi-trillion-dollar levels.
With fundamentals aligning, usage soaring, and on-chain indicators suggesting Ethereum is currently undervalued, investors may be looking at a key inflection point. If the stablecoin boom materializes as predicted, Ethereum might not just ride the wave—it could lead it.
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