Ether Can Flip Bitcoin, Tom Lee Boldly Claims—But What Are the Real Odds?

Tom Lee drops a bombshell prediction: Ethereum might just dethrone Bitcoin. Is this visionary foresight or pure hopium?

The Case for the Flip

Lee points to Ethereum's robust smart contract ecosystem and accelerating institutional adoption as key drivers. Unlike Bitcoin’s store-of-value narrative, ETH actually gets used—deFi, NFTs, and an ever-expanding web3 landscape give it utility Bitcoin can’t match.

Market Realities Check

But let’s be real—Bitcoin isn’t stepping aside quietly. It still dominates market cap, mindshare, and ETF flows. Flipping the king would require Ethereum to not just grow, but fundamentally reshape crypto’s hierarchy. Possible? Sure. Probable? Ask the traders who’ve heard this song before.

One cynical take: Wall Street loves a good narrative—almost as much as it loves collecting fees on volatile assets.

So, is Lee right? Stranger things have happened in crypto. But betting against Bitcoin has historically been a quick way to fund someone else’s Lambo.

While Ether has gained price against Bitcoin since April — its price rising from 0.019 to 0.04 — in BTC terms, each unit of ETH is cheaper than it was in 2021 or 2017. 

Therefore, despite Ether’s current price of $4,280 (a 92.5% rally from last year), Bitcoin maintains its position as the dominant cryptocurrency. As Jeff Embry of Globe 3 Capital put it:

“ETH has too high a hill to climb to surpass BTC, and the drivers of what creates value for both should keep BTC in the lead.”

Ether competition

Spot ETFs for Ether rivals are on the horizon, and treasury holdings in other digital assets could challenge Ether’s dominance. For example, Tron’s low-cost transactions may gain traction as stablecoins expand.

While Ether could outpace Bitcoin, it remains far below its 2017 highs, and its uncapped supply limits its potential to surpass Bitcoin.

Lee’s bold predictions come as BitMine Immersion Technology (BMNR) strategically shifts its focus to building a large Ethereum treasury.

Meanwhile, Michael Saylor’s Bitcoin-focused Strategy is facing challenges, having been recently sued by investors and snubbed from the S&P 500.

Thinking about the S&P right now… pic.twitter.com/Y5nPc9XT4l

Ethereum: the bullish case

As of Sept. 6, Bitcoin’s market cap is over $2.2 trillion. Ether’s market cap is $515 billion. But, in April, the market cap of Ether was below $180 billion, so it grew considerably in the summer months.

Ethereum co-founder Joseph Lubin says it’s only a matter of time before his brand of crypto closes the gap.

“ETH will likely 100x from here,” he posted to X on Aug. 30. “Probably much more.”

Ethereum co-founder Joseph Lubin hinted on CNBC that he believes $ETH could flip $BTC within "the next year or so, especially with these treasury companies driving things."

At bitcoin's current market cap, ETH WOULD need to be around $20,000 to flip it. pic.twitter.com/o3730nEmCY

Before June, Ether struggled amid criticism of large sales by the Ethereum Foundation, which contributed to price declines.

Solana eventually surpassed Ethereum as a leading platform for memecoins. And this past spring, ETH was trading below $2,000.

By July, Ether gained over 60% while Bitcoin gained only around 10%. Ethereum dominance doubled between May and August, going from 7% to 14%.

The summer of 2025 saw a lot of factors contributing to Ether’s bull run:

• BitMine’s Ether pivot.
• Massive Ether ETF inflows and intensifying stablecoin race.
• The European Union plans to use Ethereum for a digital euro.

Under Lee, BitMine Immersion Technology turned into the second-biggest digital asset treasury in the world and the top corporate ETH holder. As of Aug. 25, it owns 1.71 million Ether units. The company aims to buy 5% of the Ether supply. At the current stage, it owns nearly a third of the needed amount. 

Lee isn’t the only one who cares about BitMine’s success. Big-name investors like Peter Thiel, Cathie Wood, and Bill Miller III now hold large stakes in the company. The company announced its plans to issue $20 billion worth of BMNR stock to raise capital for further increase of ETH holdings.

ETFs

Spot Ethereum ETFs have outpaced Bitcoin ETFs, signaling strong institutional demand. In July, Ethereum ETFs saw $1.8 billion in inflows versus $70 million for Bitcoin ETFs. This surge in 2025 followed Circle’s successful IPO, the GENIUS Act enabling stablecoin issuance, and growing stablecoin competition, with Ethereum supporting roughly half of the stablecoin market.

On Aug. 22, the European Central Bank reportedly considered using Ethereum and solana to issue a digital euro, potentially placing Ethereum at the core of a major economy. That same day, Fed Chair Jerome Powell’s Jackson Hole remarks hinted at a possible September rate cut, boosting liquidity. Combined, these developments propelled Ether near $5,000 for the first time on Aug. 29.

Jerome Powell: “It might be time to cu—”

The market: pic.twitter.com/TPoVyUTB9H

Institutional investors are draining the Ether supply while drastically increasing demand for it. The amount of ETH held on exchanges has reached the lowest point in around ten years. These factors may contribute to the ETH price ascension.