Raoul Pal Calls Ethereum Wildly Undervalued, Holds Bitcoin, Solana, Sui

During a podcast appearance, Real Vision CEO Raoul Pal said he continues to hold Bitcoin, Solana, and Sui, called Ethereum wildly undervalued, and argued that markets misprice blockchain networks.

Nevertheless, the figures underpinning his case warrant scrutiny before investors take his advice.

Why Pal Sees Ethereum as Central

His stress test starts with Ethereum going offline tomorrow. That outage, he said, would knock out 70% to 76% of stablecoins and a similar slice of DeFi. Beyond that, most real-world assets, the digital art market, and every Layer-2 network built on top would also be hit.

Combined, Pal estimates the destruction would wipe out between $1 trillion and $1.5 trillion. He argues the market has failed to price in that risk.

“Now there is demand for Bitcoin as a collateral asset. We know that. But the convexity of, you know, something like ETH, I don’t know what the size of ETH is now, what its market cap is, but it’s wildly undervalued versus, you know, what is coming,” Pal said.

His buying rule is to wait until an asset falls two standard deviations below its long-term trend and then hold it. The strategy has been the same for two years.

Take 2022: he purchased Ethereum and Solana close to their lows and held them up to record highs. He cautions that attempting to sell at the peak and repurchase at lower prices is “psychologically impossible.”

In addition, he owns Solana and Sui. He credits Sui’s economic density for helping it withstand this year’s pullback. The same buy-the-dip method applies to Zcash, with privacy demand growing.

Why Liquidity Might Return to Crypto

Pal contends that crypto and tech have fallen behind money-supply expansion because fresh capital has gone into AI infrastructure. Going forward, he believes rate reductions and a revival in capital spending could shift liquidity into crypto. He also notes that crypto is still inexpensive relative to gold and the Nasdaq.

Looking further ahead, he envisions an “economic singularity” driven by AI agents by 2030. That timeframe, he adds, means the coming four years are crucial for accumulating wealth.

Speaking at Sui Base Camp in Singapore, he projected a $10 trillion crypto market in 18 to 24 months. Over a longer horizon, he expects the market to possibly hit $100 trillion by 2035.

He predicts stablecoin supply could grow to $1 trillion within three to four years as institutions bring more assets on-chain. The main catalysts are rising liquidity, AI investment, and tokenized assets.

Meanwhile, Bitcoin remains below its long-term trend and appears undervalued compared with tech stocks. Still, insufficient liquidity might postpone any advance.

In short, his advice is unchanged: pay attention to network value and long-term trends rather than short-term fluctuations.