Cryptocurrencies had a tough year in 2025, with most popular coins and tokens suffering losses. Not even the industry leaders like Bitcoin and Ethereum (ETH +5.46%) were spared, ending the year down 5% and 11%, respectively.
But 2026 is here, and Wall Street analyst Tom Lee recently came out with a set of very bullish forecasts. He thinks Ether, which is the native cryptocurrency of the Ethereum network, could soar to $9,000 per coin early in the year, implying a potential upside of 177% from where it's trading as I write this.
Lee founded Fundstrat Global Advisors, but he's also the chairman of BitMine Immersion Technologies (BMNR +8.13%), which owns approximately $13.4 billion worth of Ethereum, so he certainly has some skin in the game. How realistic is his latest forecast?
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What is Ethereum?
Ethereum is a platform where people develop decentralized software applications, which are increasingly popular in industries like gaming and financial services. These apps are governed by smart contracts, which are pieces of computer code that live on the Ethereum blockchain. They typically can't be changed, so no person or company can manipulate the app's core set of rules, ensuring it stays decentralized.
The Ethereum network itself is also completely decentralized. Instead of using one large data center, it's hosted on thousands of nodes (computers) all over the world that store an updated copy of its blockchain. Therefore, the network won't be compromised even if some nodes go down, and that's how Ethereum has boasted 100% uptime over the last decade.
Ether is like the fuel that makes the Ethereum network function. Every time a person activates a smart contract by using an app, or even transfers a crypto token built on Ethereum, they incur a fee that is payable in Ether. Therefore, the larger the network grows, the more demand there is for Ether, and the more valuable the coin becomes (in theory).
Thousands of decentralized apps have been built on Ethereum so far. Uniswap, for instance, is a popular exchange where people can trade their cryptocurrencies for other cryptocurrencies. Pricing and execution is handled entirely by smart contracts with no intermediaries, creating a lightning-fast and cost-effective experience. Users don't even need to create an account, because they can connect their crypto wallets directly to Uniswap and immediately start transacting.
How realistic is Lee's target?
Tom Lee thinks decentralized apps will take over the financial industry, and as the largest platform of its kind, he's betting Ethereum will lead the transition. The world's largest asset manager, BlackRock, is already exploring plans to tokenize some of its exchange-traded funds (ETFs) by moving them onto the blockchain, where they can trade more efficiently compared to using traditional stock exchanges.
CRYPTO: ETH
Key Data Points
That is just one example suggesting Lee could eventually be right. But the growing adoption of stablecoins -- many of which are built on Ethereum -- is another sign. These cryptocurrencies are designed to maintain a stable value (hence their name), and they can be sent anywhere in the world practically instantly. Therefore, they are far more efficient than traditional payment rails that often take several days to move money across borders.
According to Cathie Wood's Ark Investment Management, over $15 trillion in payment volume was processed using stablecoins in 2024, which was more volume than both Visa and Mastercard processed.
But could all of this send Ether soaring by 177% to $9,000 per coin in the early stages of 2026? I'm not so sure. Ether climbed to a record price of $4,946 per coin in 2025, which was a win for investors, but it was the first new high in four years. Plus, the coin has already lost 32% of its peak value, so I'm not sure if it can muster enough momentum to almost triple in value in the next few months like Lee predicts.
With that said, $9,000 per coin would give Ether a market capitalization of around $1.08 trillion, so it would still be much smaller than Bitcoin, which has a market cap of $1.85 trillion. Therefore, I wouldn't rule out Lee's target, especially if the decentralized revolution continues to gather momentum, but I would certainly be cautious about the timing. Plus, it's important to remember Lee chairs the BitMine Immersion Technologies company, which owns 4.1 million Ether coins, so he has a vested interest in putting forward highly bullish targets.
