Ethereum Price Prediction Sparks Debate Over Market Cap
Tom Lee, co-founder of Fundstrat, is one of Ethereum's (CRYPTO: ETH) biggest supporters. He believes that the cryptocurrency could eventually reach $250,000, a massive jump from its current market cap of around $580 billion.
Lee thinks Ethereum will become the primary global currency for machines to pay each other instantly. He points to its use by major financial companies as another sign of its growth potential. BlackRock has launched its first tokenized fund on Ethereum, and JPMorgan Chase has created multiple tokenized money market funds on the blockchain.
However, there are problems with Lee's prediction. With about 121 million ETH in circulation, a $250,000 price would put the total market cap at over $30 trillion. This would require tens of trillions of dollars invested in Ethereum.