Tom Lee Loves Ethereum, But Is Solana Quietly Taking Over? This Expert Says SOL Will 'Outperform' ETH — Here's More - Grayscale Ethereum Mini Trust (ETH) Common units of fractional undivided beneficial interest (ARCA:ETH)

As the CIO of Fundstrat Capital, Tom Lee doubles down on Ethereum ETH/USD; however, Fred Krueger challenges this Ethereum-centric narrative, noting Solana's SOL/USD “rising dominance.”

What Happened: A crypto enthusiast and investor at 2718.fund, a venture capital firm focused on the fintech and blockchain sectors, Krueger, highlighted Lee’s views on Ethereum, stablecoins, and Bitcoin BTC/USD treasury companies in an X thread and presented his arguments against them.

Solana Vs. Ethereum

Lee explains that Wall Street is enthusiastic about stablecoins and they primarily run on Ethereum, contributing 30% of its gas fees, and predicts an “exponential increase” from $200 million to $2 trillion in five years.

However, Krueger highlights Solana’s transaction volume and user activity, saying that it “significantly outpaces Ethereum in daily active addresses, by 5–10× on some measures.”

Lee’s “programable money will run on ETH” argument has holes in it, and “Tom Lee conveniently does not mention Solana,” explains Krueger. Adding that only when you add “all the layer2s on ETH you get close to Solana.”

Furthermore, Lee argues that Bitcoin treasury companies are viable because they can issue convertible debt to capitalize on volatility, to which Kriueger questions, “ETH may have higher volatility, but are convertible bonds deep enough for all these treasury companies?”

Lee envisions the next 5-10 years focusing on “programable money” rather than just “hard money,” with Ethereum leading in market cap, supported by Robinhood's tokenized stock experiments.

While Krueger agrees with Lee on the “programable money” part of Lee’s arguments, he says, “I just think there is a reasonable chance this happens on Solana, not ETH.”

Lastly, as Lee says, there is a “Sovereign Put” on BTC and ETH Treasury companies, as this will be the only way to acquire these extremely large blocks. Krueger argues that government intervention could reduce the long-term value of blockchain rails like ETH, with Bitcoin potentially emerging as the dominant store of value due to its energy-backed proof-of-work model.

“But. I will give Tom Lee credit. And I think in the short to medium term, he is probably right. ETH and SOL will probably outperform,” adds Krueger.

Why It Matters: Lee was recently appointed as the chairman of BitMine Immersion Technologies Inc. BMNR, on June 30. He plans to pivot the $26 million Bitcoin mining firm into the “MicroStrategy of Ethereum,” making ETH its primary reserve asset.

To initiate this shift, BitMine has launched a $250 million private placement aimed at accumulating Ether while maintaining its existing Bitcoin mining operations.

Lee emphasized Ethereum’s crucial role in the stablecoin ecosystem, likening stablecoins to the “ChatGPT of crypto” due to their rapid adoption. He believes that holding ETH will allow BitMine to support and benefit from this foundational infrastructure.

Price Action: As of the publication of this article, Bitcoin was trading at $108,837.63 per coin, Ethereum was at $2,566.39 per coin, and Solana was at $151.15 per coin.

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