Tom Lee: Ether Could Hit $7k–$9k by 2026 as Tokenization Drives Demand
Fundstrat research head Tom Lee told CNBC that Ethereum’s role as financial infrastructure—driven by institutional tokenization of real-world assets (RWA) and onchain settlement—could push Ether (ETH) to $7,000–$9,000 by early 2026 and potentially $20,000 over the longer term. Lee highlighted Wall Street initiatives at firms such as Robinhood and BlackRock as catalysts for tokenization. He also expressed bullish views on Bitcoin (BTC), calling it a store of value and suggesting a move toward $200,000 next year is plausible. Data cited shows tokenized RWA market value rose to about $18.9 billion in 2025, with US Treasuries (~$8.5B) and commodities (~$3.4B) leading. Ethereum hosts the majority of tokenized RWA—over $12 billion—and around $170 billion in stablecoins, maintaining its position as the primary settlement layer. Institutional moves such as the DTCC’s plan to tokenize part of US Treasuries on the Canton Network were noted as further support for onchain adoption.
Bullish
The news is bullish for ETH and the broader crypto market because it links rising institutional activity—tokenization of RWAs and onchain settlement—to increased structural demand for Ether as the primary settlement and collateral asset. Key factors supporting a bullish classification: 1) Direct demand mechanism: tokenized assets and stablecoin issuance on Ethereum increase onchain transaction volume and collateral needs for ETH. 2) Institutional endorsement: mentions of Robinhood, BlackRock, DTCC tokenization pilots, and Fundstrat’s projections raise credibility and potential capital inflows. 3) Market momentum: rapid growth in tokenized RWA valuations (from ~$5.6B to ~$18.9B in 2025) suggests an accelerating trend rather than a one-off event. Short-term effects: increased speculative buying and higher volatility around headlines and milestone announcements (e.g., DTCC pilots), benefiting traders who position for momentum. Liquidity and spot/derivatives flows may spike, tightening on-chain metrics like supply available on exchanges and increasing funding rates. Long-term effects: if institutional tokenization scales, it could create steady structural demand for ETH—lowering circulating supply relative to utility—and reinforce Ethereum’s role as a dollar-settlement layer, supporting higher price baselines. Risks and caveats: adoption timelines can be slow; regulatory, interoperability, or custodial hurdles could delay capital deployment. Market may already price some of this optimism, so sharp short-term corrections remain possible. Overall, the announcement increases the probability of sustained upward pressure on ETH, making the immediate-to-medium-term outlook bullish for traders focusing on ether exposure.