The Mechanism Capital partner pushed the competitive angle further. \u201cMost of the fees will be captured by other blockchains with stronger business development teams,\u201d he wrote, naming \u201cSolana, Arbitrum, and Tempo\u201d as seeing \u201cmost of the early big wins,\u201d and adding that \u201cTether is supporting two new Tether chains, Plasma and Stable,\u201d explicitly intended to route USDT volume to Tether-controlled rails.<\/p>\n
Kang also dismissed Lee\u2019s \u201cdigital oil\u201d framing as analytically hollow. \u201cOil is a commodity\u2026 real oil prices adjusted for inflation have been trading in the same range for over a century with periodic spikes that revert\u2026 I agree ETH could be viewed as a commodity, but that\u2019s not bullish,\u201d he wrote.<\/p>\n
He extended the range analogy directly to Ether\u2019s chart: \u201cLooking at this chart objectively, the strongest observation is that Ethereum is in a multi-year range\u2026 we recently tapped the top of the range, failing to break resistance\u2026 I would not discount the possibility of a much longer $1,000\u2013$4,800 range.\u201d On relative performance, he added: \u201cLong-term ETH\/BTC is indeed in a multi-year range, but the last few years have mostly been dictated by a downtrend\u2026 The ethereum narrative is saturated and fundamentals do not justify valuation growth.\u201d<\/p>\n
On institutions, Kang argued that Lee\u2019s premise\u2014that banks and large corporates will accumulate and stake ETH to secure tokenization networks or as operating capital\u2014misunderstands treasury behavior and value accrual. \u201cHave large banks\u2026 bought ETH on their balance sheet yet? No. Have any of them announced plans to? Also no\u2026 Do banks stock up on barrels of gasoline because they continually pay for energy? No\u2026 Do banks buy stocks of asset custodians they use? No,\u201d he wrote, calling the idea that staking demand from incumbents would underpin valuation a category error.<\/p>\n
Kang\u2019s thread culminated in a withering assessment of Ethereum\u2019s pricing dynamics: \u201cEthereum\u2019s valuation comes primarily from financial illiteracy\u2026 [which] can create a decently large market cap\u2026 But the valuation that can be derived from financial illiteracy is not infinite\u2026 Unless there is major organizational change it is likely destined to indefinite underperformance.\u201d<\/p>\n
Lee\u2019s latest outlook, by contrast, has emphasized Ethereum\u2019s suitability for Wall Street tokenization and its role as a \u201cneutral chain,\u201d with public targets clustered around $10,000\u2013$12,000 by end-2025 and up to $62,500 in a favorable super-cycle.<\/p>\n
At publication time, ETH traded near $4,000.<\/p>\n
![\"Ethereum](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/09\/ETHUSDT_2025-09-25_08-40-21.png?resize=1024%2C471\")
<\/p>\n","protected":false},"excerpt":{"rendered":"
Mechanism Capital co-founder Andrew Kang escalated his critique of Tom Lee\u2019s latest Ethereum investment case with an unusually blunt tirade on X, interlacing his rebuttal with a series of sharply worded assertions and data-driven claims. \u201cTom Lee\u2019s ETH thesis is one of the most retarded combinations of financially illiterate arguments I\u2019ve seen from a well…<\/p>\n","protected":false},"author":1,"featured_media":7368,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[143],"tags":[64,144,145,112,66,88,89],"class_list":["post-7367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-eth","tag-eth-news","tag-eth-price","tag-ether","tag-ethereum","tag-ethereum-news","tag-ethereum-price"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/7367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=7367"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/7367\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/7368"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=7367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=7367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=7367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}