Ethereum Co-Founder: ETH May Outpace Bitcoin in Market Cap by Next Year

Joseph Lubin, a co-founder of Ethereum, says Ethereum’s market cap could surpass Bitcoin’s in the next year. This reflects increasing confidence in Ethereum as the leading platform for the decentralized economy. Many companies are starting to use it, and the network is steadily improving. Experts such as Tom Lee from Fundstrat agree that Ethereum might reach prices we didn’t expect before.

Growing Institutional Interest In ETH

Lubin highlighted a major change happening within corporate treasuries. In a similar way to how Michael Saylor’s MicroStrategy led the institutional adoption of Bitcoin by holding it as a reserve asset, companies are now starting to build up Ethereum treasury holdings. Lubin is the chair of Sharplink Gaming, which plans to become one of the largest institutional holders of ETH. This shows a broader pattern of corporate belief in Ethereum’s potential over the long term.

What distinguishes Ethereum is its unique mix of decentralized finance applications alongside traditional financial infrastructure. Tom Lee described it as the intersection of Wall Street and cryptocurrency, highlighting that firms such as JPMorgan and Robinhood are actively developing projects on Ethereum’s platform. This rising institutional involvement could have a strong positive effect on ETH’s price.

In addition, Ethereum’s proof-of-stake system enables staking rewards, unlike Bitcoin’s deflationary structure. Lee estimates that a treasury managing $3 billion in ETH might generate over $100 million per year from staking rewards. This feature is expected to increase demand from institutional players.

Market Trends and Macro Factors Supporting ETH

Ethereum’s recent price surge has reinforced its position in the market. Co-founder Vitalik Buterin has regained billionaire status due to the on-chain value of his holdings. ETH recently closed above $4K for the first time since late 2024, showing renewed confidence from investors.

The broader economic environment also appears supportive. Morgan Stanley’s chief investment officer recently announced the end of a long economic slowdown, describing the start of a strong bull market for stocks. Since Bitcoin often signals trends in digital assets, this growing risk appetite may extend to Ethereum and other altcoins.

Additionally, Lubin pointed out the passage of the Genius Act in the US, which offers clearer legal guidance on stablecoins. This is important for Ethereum’s smart contract ecosystem. Greater regulatory clarity encourages more stablecoin projects, strengthening Ethereum’s role in decentralized finance and enterprise solutions.

Furthermore, the network’s increasing adoption by major enterprises, including financial firms, highlights its rising importance as a platform for tokenized assets and advanced applications beyond basic payments.

The Path to Surpassing Bitcoin’s Market Cap

For Ethereum to exceed Bitcoin’s market capitalization, ETH would need to trade close to $20,000 based on Bitcoin’s current value. Analysts at Fundstrat consider this within reach, pointing to a potential return to the 2021 peak ETH/BTC ratio, which places Ethereum near $16,000. More optimistic predictions suggest ETH could hit $30,000 or higher within the next year.

Lubin dismisses the notion that rival blockchains pose a serious challenge to Ethereum’s dominance. He points out that no other platform comes close to Ethereum in terms of scale, the number of developers, or the maturity of its ecosystem. While Bitcoin occupies a special place, Ethereum stands out as the essential foundation of Web3.

This focus on institutional adoption is clear in treasury strategies inspired by MicroStrategy but centered on ETH. Under Lubin’s leadership, Sharplink Gaming aims to be at the forefront of this trend, reflecting a growing movement where companies treat Ethereum as a strategic reserve rather than merely a speculative asset.

With Wall Street firms increasingly building on Ethereum and the network approaching its tenth anniversary, many anticipate the “flippening,” the point at which Ethereum surpasses Bitcoin in market capitalization.

Could ETH Really Surpass BTC?

The future for Ethereum looks very promising. Lubin’s idea of ETH as the “digital oil” powering the decentralized economy, along with growing institutional support and positive macroeconomic factors, indicates that Ethereum’s growth could speed up significantly over the next year. As the network continues to develop and expand its role in both DeFi and enterprise solutions, the long-held speculation that Ethereum might overtake Bitcoin could soon come true.