Ethereum (ETH) is poised for a massive surge, potentially reaching $1.5 million per token, according to EMJ Capital founder Eric Jackson. Jackson believes the approval of Ether staking ETFs could trigger a rally that surpasses all expectations. He emphasized that the market is underestimating Ethereum's potential, stating, "Our analysis suggests the ETH network is underpriced. Ethereum is quietly becoming the dominant rail system to transact in crypto with deflationary economics."
Ether Staking ETF Approval: The Catalyst
The potential approval of Ether (ETH) exchange-traded funds that feature staking in the US is a key factor. Jackson anticipates a "10-bagger plus move is in the cards over the coming years," fueled by the use of the blockchain by major financial institutions. While the SEC approved Ether ETFs in July 2024, many analysts believe that the market hasn't fully priced in the approval of ETH products that include staking, expected before October.
Jackson notes that while US spot Bitcoin ETFs have recorded $6.9 billion in volume, their Ether counterparts have only seen $1.41 billion. He argues that "Once ETH becomes a productive, staked asset within an ETF wrapper… It’s no longer just ‘digital oil.’ It’s an institutional-grade yield product." This development would compound Ether’s deflationary tokenomics, reducing its circulating supply and driving increased staking demand.
Ethereum vs. Solana: The Preferred Choice
Fundstrat's Tom Lee also highlighted Ethereum's dominance in tokenized finance, asserting that it has become Wall Street's preferred blockchain infrastructure. He told CNBC that there is a rediscovery of Ethereum is taking place, citing its role in powering stablecoins and tokenized assets, which now account for over 60% of Ethereum's network usage.
Lee emphasized Ethereum's position as a technology platform, not just a digital asset like Bitcoin, stating, "Ethereum is like the preferred choice for Wall Street. It already is more than 60% of all the tokenized real-world assets, and that share is growing." With giants like JPMorgan and Robinhood building stablecoin and tokenization infrastructure on Ethereum, the trend appears to be solidifying. While Solana offers competition, Lee pointed out that "JP Morgan's stablecoin is built on Ethereum. Robinhood is building their tokenizing business on Ethereum. As a layer one, Ethereum is already entrenched."