Ethereum Co-Founder: "ETH Market Cap Will Surpass BTC Within a Year"

Ethereum co-founder Joseph Lubin believes ETH could exceed Bitcoin's market capitalization next year. He refers to the increasing adoption by corporate financial buyers and mature ecosystem as the "digital oil of the decentralized economy".

In an interview with CNBC, Lubin described Ethereum's current stage as a "broadband moment". This is a point where scalability, usability, and legal clarity enable mainstream adoption. Fundstrat co-founder Tom Lee also shares this positive outlook, identifying specific catalysts that could push ETH to over $30,000 from its current levels.

Treasury Adoption, Institutional Momentum

"What if the world economy sits on Web3 rails fortified by decentralized trust, if Bitcoin's value is $20 trillion? We might see some amazing things around next year, especially driven by financial companies," Lubin said.

Lubin, also chairman of Sharplink Gaming, stated that companies are increasingly building Ethereum financial funds. This reflects the approach taken by Michael Saylor's MicroStrategy with Bitcoin. He argued that this movement could contribute to elevating Ethereum as a core reserve asset for both public and private institutions.

Fundstrat's co-founder Tom Lee agreed with Lubin's optimism. Lee compared Ethereum's current trajectory to Bitcoin's breakthrough in 2017, referencing when BTC surged with the "digital gold" narrative. He identified three catalysts: regulatory approval for stablecoins, the SEC's on-chain financial movement initiative, and major institutions like JPMorgan and Robinhood directly building on Ethereum.

"Ethereum is where Wall Street meets crypto, and now where AI meets a tokenized economy," Lee said. He emphasized the convergence of decentralized finance, artificial intelligence, and tokenized infrastructure.

Lee also mentioned that Ethereum's staking model offers yield advantages over Bitcoin's pure deflationary design. He estimated that Bitmain, as an Ethereum-centric financial company modeled after MicroStrategy, could generate over $100 million in annual net profit by staking its $3 billion ETH holdings.

Market, Macro Tailwinds

Ethereum's recent rally has brought co-founder Vitalik Buterin back to the on-chain billionaire ranks. According to Arkham Intelligence, Buterin currently holds approximately 242 ETH worth about $1.04 billion. ETH rose over 6% on Saturday to reach $4,332, marking its first close above $4,000 since December.

Macro conditions also appear favorable. Morgan Stanley's Chief Investment Officer Mike Wilson recently declared an end to the 3-year recession and the start of a "raging bull cycle" for stocks. Lee noted that Bitcoin has acted as a leading indicator for stock market movements, suggesting that increased risk appetite in stocks could spread to digital assets and boost Ethereum's value.

Lubin highlighted the recently passed Genius Act as another catalyst. The bill provides legal clarity for stablecoins in the US, making it more attractive to deploy on Ethereum's smart contract infrastructure. Combined with a decade of technological development, this has positioned Ethereum to integrate into the global economy mainstream.

Narrowing the Gap with Bitcoin

For Ethereum to exceed Bitcoin's current market capitalization, it would need to trade at around $20,000. Some analysts, including Fundstrat's Sean Farrell, anticipate the ETH/BTC ratio returning to its 2021 peak of 0.14, which would value ETH at approximately $16,000 based on current Bitcoin prices.

Lubin dismissed concerns about so-called "Ethereum killers". While other platforms have launched with innovative features, he stated that none have caught up with Ethereum's scale, developer talent, and maturity.

"There has never been an ecosystem as large, talented, and mature as Ethereum. Bitcoin is a special case, but Ethereum is the functional backbone of Web3," Lubin said.

Institutional strategy is already aligning with that perspective. Sharplink Gaming, where Lubin serves as chairman, is becoming the largest corporate ETH holder, positioning itself as the "MicroStrategy of Ethereum". This reflects a broader movement of finance-focused companies treating Ethereum as a strategic reserve asset.

Lee believes the gap between ETH and BTC could narrow quickly as Wall Street builds more on Ethereum and the network becomes the preferred platform for tokenized assets. As Ethereum celebrates its 10th anniversary and expands into DeFi and enterprise applications, Lubin sees the coming year as decisive. It could be the year when "flippening" becomes a reality sooner than many expect.