Tom Lee, a well-known crypto analyst, explains why big institutional investors are sticking with Ethereum, even though some smaller players have moved to faster blockchains like Solana and Sui.
Speed vs. Reliability: A Tale of Two Investors
Lee argues that the focus on speed isn’t the whole story. While retail investors might prioritize fast transactions, Wall Street cares more about reliability and uptime. Ethereum, despite being slower than some competitors, boasts consistently high uptime. This is crucial for institutional investors who can use layer-2 solutions to speed up transactions if needed. They’d rather have a dependable system than a super-fast one that’s prone to outages.
Staking: It’s Not Just About the Money
Lee also highlights the importance of staking. He says it’s not just about earning rewards; it’s about influence. Large institutional holders like Goldman Sachs can use their staked ETH to have a say in how Ethereum develops and upgrades. This level of involvement is a significant advantage that other blockchains don’t offer.
Ethereum’s Price: A Lagging Story, Now Changing?
Lee acknowledges that many investors felt Ethereum underperformed compared to Bitcoin for a while. However, he believes that’s changing. The recent price surge past $4,800 has boosted confidence, and he sees this as a potential catalyst for even bigger growth.
Ethereum’s Recent Price Surge and Future Outlook
Ethereum’s price has been on a tear lately, even surpassing its previous all-time high in late August 2025, reaching over $4,946. This surge reflects increased institutional investment, particularly noticeable in the performance of Ethereum ETFs compared to Bitcoin ETFs. Although the price has since corrected slightly, the overall sentiment remains bullish. Analysts are predicting year-end prices ranging from $6,000 to $12,000, fueled by increased institutional involvement and positive regulatory developments. At the time of writing, Ethereum is trading around $4,390.