Fundstrat co-founder Tom Lee expects Ethereum to outperform Bitcoin over the coming years, citing the ETH/BTC ratio breaking above a long-term downtrend and new demand drivers from Wall Street tokenization and agentic AI. In a post on X on August 17, 2026, Lee wrote that the tailwind for Ethereum in the next few years could be larger than those from prior cycles like ICOs and NFTs.
The ETH/BTC ratio stood at 0.02994, moving above a downtrend that had limited Ethereum against Bitcoin for years. Lee said the rising ratio supports his view that markets are beginning to price in Ethereum’s expanding use cases.
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Ethereum’s Demand Drivers Beyond the Current Cycle
Lee’s outlook builds on a history of crypto cycles driven by specific catalysts. Initial coin offerings fueled the 2017–2018 boom, while NFTs and decentralized applications shaped the 2020–2021 period. Now, Lee sees two emerging forces: the tokenization of traditional assets and the rise of agentic AI.
Wall Street firms are increasingly exploring putting stocks, bonds, and funds on blockchain networks. Ethereum is a leading platform for such tokenized products, and Lee believes institutional adoption could increase demand for its infrastructure.
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Agentic AI systems, which can operate autonomously, are another potential source of blockchain activity. These systems could make payments, manage assets, and use on-chain services, creating a steady stream of transactions and demand for Ethereum’s network.
Earlier this month, Lee described Ethereum as a future settlement layer for finance, focusing on its role in tokenization, stablecoins, and programmable transactions. This view aligns with the network’s technical capabilities and its position as the largest smart contract platform.
BitMine’s Growing Ethereum Holdings
Lee’s comments come as BitMine, where he serves as chairman, expands its Ethereum holdings. The company reported on August 17 that it held 5.8 million ETH, representing about 4.8% of Ethereum’s 120.7 million supply. BitMine valued its holdings at approximately $11 billion, using an ETH price of $1,893. The company added 9,926 ETH during the previous week.
BitMine’s accumulation reflects a growing trend of institutional and corporate interest in Ethereum as a long-term asset. The company’s substantial position signals confidence in the network’s future role in finance and digital infrastructure.
What to Watch Next
Investors will be monitoring whether the ETH/BTC ratio can sustain its move above the downtrend and whether institutional tokenization projects gain traction. The ongoing development of AI-agent applications on blockchain networks could also provide a new source of demand, though the technology is still in its early stages.
As of August 18, 2026, Ethereum trades at around $1,893, with market participants watching for further signals of a shift in momentum relative to Bitcoin. The coming months may reveal whether Lee’s predictions align with actual market movements, but the underlying trends in tokenization and AI suggest growing utility for Ethereum’s network.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile and uncertain; readers should conduct their own research before making investment decisions.
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