Ethereum’s Total Value Locked Poised for Tenfold Increase by 2026, Driven by Institutional Adoption
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Ethereum’s total value locked (TVL) – a key metric of network health – could surge tenfold by 2026, fueled by growing adoption across diverse applications and increasing interest from institutional investors. This projection comes from a leading industry figure, suggesting a significant period of growth for the blockchain platform.
According to data from Ethereum (ETH) Treasuries, Sharplink Gaming currently holds the second-largest publicly traded Ethereum treasury, with 797,704 ETH valued at approximately $2.33 billion as of the time of publication. This substantial holding underscores the growing confidence in Ethereum’s long-term potential.
Stablecoin Market Expansion to Boost Ethereum TVL
A key driver of this anticipated growth is the expanding stablecoin market. One industry expert predicted on X (formerly Twitter) that the total stablecoin market capitalization will reach $500 billion by the end of next year, representing a 62% increase from its current value of around $308.46 billion. Given that over half (54%) of all stablecoin activity currently takes place on Ethereum, this expansion is expected to significantly contribute to the network’s TVL.
Tokenized Real-World Assets to See Exponential Growth
Beyond stablecoins, the tokenization of real-world assets (RWAs) is also poised for substantial growth. Projections indicate the RWA market on Ethereum could reach $300 billion by 2026, with assets under management increasing tenfold. The shift will move beyond tokenizing individual assets like funds, stocks, and bonds, and focus on entire fund complexes. This trend is being catalyzed by increased interest from major financial services firms, including JPMorgan, Franklin Templeton, and BlackRock.
A rising TVL is widely interpreted as a positive indicator of growing interest in the Ethereum network, potentially strengthening market sentiment and influencing the price of ETH. As of the time of publication, Ethereum’s TVL stands at approximately $68.20 billion, according to data from DeFiLlama.
Contrasting Outlooks on Ethereum’s Price Trajectory
Despite the optimistic outlook for TVL growth, some analysts offer a more cautious perspective on Ethereum’s price. One crypto analyst noted on Tuesday that, given current Bitcoin conditions, Ethereum is unlikely to reach new price highs in the coming year. Ethereum was trading at $2,924 at the time of publication, down 3.12% over the past 30 days, according to CoinMarketCap.
Sovereign Wealth Funds Enter the Ethereum Space
Despite short-term price fluctuations, long-term interest in Ethereum remains strong. One expert anticipates that Ethereum holdings and tokenization activity by sovereign wealth funds will increase five to tenfold next year, with even more significant growth expected by 2026 as competitive dynamics intensify. “In 2026, this will increase significantly due to increasing competitive dynamics. When no one from this group of investors was ready to deal with cryptocurrencies, it was safe to stay out,” the expert explained.
Furthermore, the expert predicted that onchain AI agents and prediction markets will become mainstream, driving further activity and value within the Ethereum ecosystem.
