Tom Lee of BitMine Immersion Technologies Inc. makes a bold assertion about Ethereum, describing it as the platform that brings together Wall Street and artificial intelligence (AI).
Lee made the claim during a recent event in Manhattan. At the event, several crypto stakeholders, including Lee, framed Ethereum not just as another cryptocurrency in the market but as the foundation of the future financial system.
Speaking at the event, as reported by Bloomberg, Lee suggested that Ethereum is the meeting point between Wall Street and AI. Notably, his company BitMine boasts the largest ETH pile valued at over $6 billion.
Ethereum Features Extend Beyond Everyday Crypto Transactions
This claim contrasts with the common perception of Ethereum as a blockchain mainly used for crypto-related activities such as token swaps, trading, and yield farming. However, industry leaders like Lee believe Ethereum offers greater functions than the day-to-day crypto activities.
In his view, Ethereum is a programmable blockchain offering smart contract functionality, in which self-executing software can run financial services, such as payments, lending, and trading, without requiring intermediaries like banks.
Since launching in 2015, Ethereum has seen widespread adoption, with users leveraging it for decentralized finance (DeFi) and tokenization. Fees for these transactions are paid in ETH, which increases demand for the token as more businesses adopt the network.
Potential Challenges
While proponents like Lee position Ethereum as the cornerstone of tomorrow’s financial system, several companies are aiming to challenge its dominance.
For instance, leading stablecoin issuer Circle is developing its own Layer-1 blockchain to facilitate enterprise-grade stablecoin payments. According to reports, popular fintech company Stripe is also developing a similar infrastructure, potentially challenging Ethereum’s ambition to dominate modern finance.
Ethereum Corporate Treasury Initiative
Meanwhile, with Ethereum increasingly seen as a hub for Wall Street and AI-driven systems, several companies, including Lee’s BitMine and SharpLink Gaming, are placing bigger bets on the token.
They are stockpiling ETH in their corporate treasuries, treating it as a treasury asset. Joseph Lubin, co-founder of SharpLink Gaming, along with Lee, believes that the Ethereum treasury program is crucial in reducing the amount of ETH in circulation, which could boost its demand and price.
In the meantime, investors are keeping a close eye on Ethereum as the second-largest token attempts to break its previous all-time high (ATH) of $4,891, recorded in 2021.
Last week, ETH came close to surpassing this mark, rising to $4,788 before retracing to the $4,200 range. It is currently trading at $4,288, down 0.42% over the past 24 hours and 0.15% over the past week.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
