Ether is the native cryptocurrency in the Ethereum (CRYPTO: ETH) network, which is a leading destination for developers who want to build decentralized software applications. Whenever people use one of these applications, trigger a smart contract, or transfer a crypto token built on Ethereum, they incur a fee that is payable in Ether.
This structure creates ongoing demand for Ether, so as long as the Ethereum network continues to grow in popularity, the cryptocurrency should (theoretically) increase in value over the long term. This scenario seems likely because decentralization is a growing trend, especially in areas like finance, where people value transparent systems with low fees.
Tom Lee founded Wall Street firm Fundstrat Global Advisors, and he’s also the chairman of BitMine Immersion Technologies (NYSEMKT: BMNR), which owns $10 billion worth of Ether. He thinks the cryptocurrency could soar to $7,000 per coin heading into the first quarter of 2026, implying a potential upside of 147% from its current level. How realistic is this target?
Ethereum is leading the decentralized revolution
The Ethereum network has a stellar track record, with zero downtime in the past decade. It owes this achievement to its decentralized structure; rather than using one central data center, the network is hosted on thousands of nodes (computers) worldwide, and each of them stores a full copy of the Ethereum blockchain. Therefore, the network will remain fully active even if some nodes go down, which gives developers the confidence to build their applications on Ethereum.
Decentralized apps are powered by smart contracts, which are pieces of computer code that live on the Ethereum blockchain. They lay out the rules governing how the app functions, and they can’t easily be changed, which protects the app from manipulation by humans or companies. In other words, smart contracts ensure that apps stay decentralized.
Thousands of decentralized apps have been built on Ethereum so far. Uniswap is one of the most noteworthy, because it has become a highly popular exchange for investors who are looking to trade their cryptocurrencies for other cryptocurrencies. Pricing and execution are handled entirely by smart contracts, with no intermediaries. Users don’t even need to make an account — they can simply connect their crypto wallets to Uniswap directly and start trading.
