Ethereum TVL Could 10× by 2026 as $500B Stablecoin Boom Fuels Growth
Ethereum's total value locked (TVL) is likely to expand by a massive ten times by 2026, with the growth coming from institutional...
Quick overview
- Ethereum's total value locked (TVL) is projected to increase tenfold by 2026, primarily driven by institutional investors.
- Stablecoins are expected to grow to $500 billion by 2026, with Ethereum capturing a significant portion of this market.
- Tokenized real-world assets (RWAs) are also on the rise, potentially reaching a market value of $300 billion as major asset managers adopt tokenization.
- Despite positive developments, the price of Ether has struggled, falling over 12% in the past year, but long-term growth is anticipated as more institutional capital flows into Ethereum.
Ethereum’s total value locked (TVL) is likely to expand by a massive ten times by 2026, with the growth coming from institutional investors – not from everyday traders speculating on the price of DeFi schemes. This is the view of Joseph Chalom, co-CEO of Sharplink Gaming, who just so happens to be the second-largest public holder of Ethereum on the blockchain after selling off $2.33 billion worth of it. The fact that a big company is using that much cash to buy Ethereum shows just how seriously corporate balance sheets are now taking these public blockchains.
Ethereum’s TVL is currently sitting at a whopping $68.2 billion, according to DeFiLlama. If it does expand tenfold, that would be a big deal – it shows that big money is really starting to put its faith in Ethereum. And what’s driving this growth, according to Chalom, is the infrastructure that traditional finance uses to settle trades, safeguard assets, and issue new securities on the Ethereum network.
$500B Stablecoins and Tokenized Assets – A Whole Lot Bigger
Chalom reckons that stablecoins – those digital tokens backed by real money – are going to be the key to unlocking all this extra liquidity on the blockchain. He thinks the whole stablecoin market is going to grow to $500 billion by the end of 2026 – that’s up from a mere $308 billion now, which is a gain of straight 62%. You have to remember that right now, more than half of all stablecoin activity is already happening on Ethereum, so it’s no surprise that Chalom thinks the network is well-placed to capture all that extra growth.
🔥 UPDATE: Ethereum is set for a major 2026 upgrade cycle as validators begin adopting ZK-proofs, paving the way for exponential scaling and a path toward 10,000 TPS. pic.twitter.com/u9rS9rpydq
— Cointelegraph (@Cointelegraph) December 26, 2025
But it’s not just about stablecoins. Another thing that’s really taking off is tokenized real-world assets (RWAs). Chalom thinks the RWA market will be worth $300 billion by 2026, and it’s all because the big asset managers are finally getting on board – some of the biggest names have already launched their own tokenization schemes, including JPMorgan, Franklin Templeton, and BlackRock.
Price Lags Behind the Tech – For Now
Despite all this good news for Ethereum, the price of Ether (the digital token that runs on the platform) has been struggling. Over the last year, it fell by more than 12% – it’s now trading at around $2,924 according to CoinMarketCap. Some analysts think that’s because the entire crypto market is going through a tough time right now, while others warn that prices may not rise anytime soon.
However, Chalom is focusing on the long game – he reckons that sovereign wealth funds are going to start buying a lot more Ethereum over the next year or so, driven by competitive pressure to get in on the action. Another area he thinks will grow is on-chain AI agents and prediction markets.
SharpLink CEO has stated that the total value locked in Ethereum (TVL) could increase by a factor of ten in 2026. pic.twitter.com/R9p2HxTswT
— Vince Crypto (@Vincebtc54999) December 27, 2025
Some of the big developments that are shaping Ethereum’s future include:
- Stablecoin supply keeps growing on Ethereum.
- Institutional investors are now allocating capital to tokenized funds and real-world assets.
- Sovereign wealth funds are starting to get on board.
- Companies are changing their strategies – take ETHZilla, a company backed by Peter Thiel, which is now actually selling off its Ethereum.
All of these things suggest that Ethereum’s next significant expansion will be driven by real-world use, rather than just hype and speculation.
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