Andrew Kang, co-founder of Mechanism Capital, has criticized Tom Lee's bullish stance on Ethereum, highlighting several misconceptions about financial fundamentals. Kang identified five key issues: the growth in stablecoin and RWA trading volumes has not translated into increased fee income, with much activity shifting to other chains like Solana and Arbitrum; comparing ETH to "digital oil" lacks a positive logic; major institutions are not buying and staking ETH to secure tokenized networks, nor do they plan to; the notion that ETH represents the value of all financial infrastructure companies is speculative; and Lee's technical analysis is unfounded, as ETH remains in a broad trading range with weak technicals. Kang concludes that ETH's current valuation is more reliant on market liquidity and speculation rather than solid fundamentals, suggesting its long-term performance may remain under pressure.
Andrew Kang Criticizes Tom Lee's Ethereum Bullish Thesis
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