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- Ethereum TVL may surge in 2026 as institutions drive on-chain finance growth
- Stablecoins and tokenized assets emerge as key engines of Ethereum demand
- Corporate strategies diverge as some expand ETH exposure while others scale back
Ethereum could enter a decisive phase in 2026 as institutional capital increases and real-world use cases expand on-chain. Market observers say the network is moving beyond hype-driven cycles. Instead, long-term financial activity is starting to define Ethereum’s growth path.
Joseph Chalom, co-CEO of Sharplink Gaming, said Ethereum’s total value locked could rise sharply over the next year. He estimates TVL may grow as much as tenfold if current trends continue. His outlook focuses on structural demand rather than short-lived market rallies.
Sharplink Gaming holds a major Ethereum position. The firm ranks among the largest publicly listed Ethereum treasury holders. It controls nearly 800,000 ETH, valued at more than $2 billion. That exposure signals confidence in Ethereum as durable financial infrastructure.
Chalom points to stablecoins as a key driver of future growth. He expects the stablecoin market to reach $500 billion by the end of next year. Ethereum already supports more than half of global stablecoin activity. Continued issuance and settlement could lock substantial value into the network.
Tokenized Assets Drive Institutional Growth on Ethereum
Tokenized real-world assets also play a central role in his outlook. Chalom forecasts the tokenized RWA market could expand to $300 billion in 2026. He describes a shift away from isolated pilots toward full investment funds operating on-chain. This evolution could bring steady institutional liquidity to Ethereum.
Conventional finance companies are already moving that way. Large banks and asset administrators are still growing the pilots of tokenization and live products. Such attempts indicate a sense of increasing trust in open blockchains. The current TVL of Ethereum is almost $68.411 billion, according to DeFiLlama.
Also Read: Ben Cowen Warns Ethereum May Struggle to Sustain Gains in 2026
TVL would be a common metric of network utility. The increasing numbers indicate more capital investment and wider utilization. Analysts have observed that institutional flows are probably more stable than retail-driven DeFi activity. Such stability has the potential to support Ethereum using market cycles.
Ethereum Adoption Grows While Price Momentum Stalls
Although there were such adoption trends, Ether has been underperforming in terms of price. The asset is down 11.54% in the past 12 months, and it is trading at $2,924 lower levels than before. Analysts attribute this gap to macro pressure and market cycles driven by Bitcoin. The price momentum has not reflected the growth of infrastructure.
According to Chalom, he is not much concerned with the price action. He believes that sovereign wealth funds are likely to increase Ethereum exposure as the competition between large allocators increases. He further envisions the spread of on-chain AI agents and prediction markets in the coming year of 2026, which would provide new activity.
Meanwhile, Peter Thiel-funded ETHZilla has started to roll out a plan that previously saw it become one of the most aggressive corporate holders of Ethereum. The company sold $74.5 million of ETH. The shift is a clear indication of the abandonment of a pure crypto treasury model.
The opposition reflects a new maturing market. Some investors are increasing their exposure, while others are intensifying it. The following chapter of Ethereum seems to be use-based rather than accumulation-based.
Also Read: Onchain Finance Accelerates as Tokenization Redefines Global Capital Markets
