Ethereum Enters Supercycle Fueled by Stablecoin Surge

• Ethereum transactions hit all-time highs
• Stablecoin demand boosts ETH fundamentals
• Tom Lee sees ETH still in a long-term supercycle

Fundstrat’s Tom Lee, a well-known market strategist, has made a bold claim: Ethereum (ETH) is still in a “supercycle.” According to Lee, the asset’s fundamentals—not just hype—are now driving its price upward. His comments come as Ethereum records all-time highs (ATH) in network activity and sees strong growth in stablecoin demand, both of which are powerful indicators of long-term strength.

A “supercycle” refers to an extended period of sustained growth, usually driven by structural demand and fundamental innovation. In Ethereum’s case, Lee points to on-chain data showing a consistent rise in activity that supports this thesis.

All-Time High in ETH Transactions

Ethereum’s daily transaction volume has hit a record level, surpassing previous bull market numbers. This growth is not speculative; it’s being driven by real network usage, including decentralized finance (DeFi) protocols, NFT marketplaces, and layer-2 scaling solutions.

This sharp rise in transactions highlights how Ethereum is becoming more than just a trading asset. It’s functioning as the backbone of decentralized finance—and that’s what gives it long-term value.

Stablecoin Demand is Boosting ETH Fundamentals

Another major factor behind Ethereum’s momentum is the rising demand for stablecoins, most of which operate on the Ethereum network. As people use stablecoins for payments, savings, and trading, they generate transaction fees paid in ETH.

This growing utility translates directly into increased demand for Ethereum, especially as ETH is also used for gas fees. Tom Lee emphasizes that these trends point to Ethereum’s strong foundation, supporting his belief that we’re still early in this supercycle.