Tom Lee Predicts $250,000 Ether Target Amidst Supply Growth Challenges
- Ethereum’s circulating supply is currently at 121.75 million ETH, growing at a rate of 0.82% annually.
- At a price of $250,000 per ETH, approximately $250 billion worth of new ether would be issued each year.
- The ether-bitcoin ratio has never exceeded 0.15, meaning a $250,000 ether would require bitcoin to rise between $1.67 million and $2.94 million.
- Corporate entities like Bitmine and SharpLink control about 7% of the circulating ether supply.
- Lido controls over half (19.4%) of the total staked ether (39.25 million ETH), surpassing all public company holders combined.
Lee’s prediction hinges on significant demand for Ethereum, as current supply growth contradicts the notion of it being “ultrasound money.” The dynamics suggest that substantial shifts in both demand and market behavior are necessary for such a valuation to materialize.
Ultimately, achieving Lee’s target would require unprecedented demand for ether while managing its steady issuance rate of around $250 billion annually.(Source)
