Ethereum’s total value locked could rise tenfold in 2026 as institutional participation deepens and new use cases gain traction, according to Joseph Chalom, co-CEO of Sharplink Gaming.
Key Takeaways:
- Ethereum’s TVL could jump 10× in 2026 as institutions and tokenized assets move on-chain.
- Stablecoin growth toward $500B is seen as a major driver of Ethereum activity.
- Ether’s price remains weak despite improving adoption trends.
The forecast comes as major financial firms expand their presence on public blockchains and capital flows into tokenized assets accelerate.
Sharplink Gaming ranks as the second-largest public Ethereum treasury company, holding 797,704 ETH worth about $2.33 billion, based on Ethereum Treasuries data.
Ethereum TVL Poised to Rise as Stablecoin Market Targets $500B
Chalom said the next phase of Ethereum’s growth will be driven less by retail speculation and more by stablecoins, tokenized assets, and institutional infrastructure migrating on-chain.
In a post on X, Chalom predicted the stablecoin market would reach $500 billion by the end of next year, up from roughly $308 billion today, a gain of about 62%.
With more than half of all stablecoin activity currently taking place on Ethereum, he argued that sustained issuance and transaction growth could materially lift the network’s TVL.
Beyond stablecoins, Chalom pointed to tokenized real-world assets as a major catalyst. He expects the tokenized RWA market to grow to $300 billion in 2026, describing the shift as a move from isolated products to full-scale fund complexes being represented on-chain.
Over the past year, firms such as JPMorgan, Franklin Templeton and BlackRock have expanded pilots and live products tied to tokenization, signaling broader acceptance from traditional finance.
Ethereum’s TVL currently stands at around $68.2 billion, according to DeFiLlama. A sharp increase would likely reflect higher institutional engagement rather than speculative DeFi activity alone.
Rising TVL is often viewed as a measure of network utility and capital commitment, factors that can shape long-term market confidence.
3/ ETH holdings and tokenization by sovereign wealth funds will increase 5-10X.
As onchain activity booms, we’ll see ETH holdings of sovereign wealth funds increase in lock-step as they gain exposure to the “trustware” asset that secures Ethereum, where the majority of the…— Joseph Chalom (@joechalom) December 26, 2025
Price performance, however, has lagged behind the adoption narrative. Ether is down more than 12% over the past 12 months and is trading near $2,924, according to CoinMarketCap.
Crypto analyst Benjamin Cowen recently said Ether is unlikely to reach new highs in the near term, citing broader market conditions tied to Bitcoin’s cycle.
Sovereign Wealth Funds May Boost Ethereum Exposure 5–10× in 2026: Chalom
Chalom remains focused on structural demand rather than short-term price action. He expects sovereign wealth funds to increase Ethereum holdings and tokenization exposure by five to ten times over the next year as competitive pressure among large allocators grows.
According to him, remaining sidelined was once the safest option, but that calculus is beginning to change.
He also expects on-chain AI agents and prediction markets to gain mainstream traction in 2026, adding further activity to Ethereum’s ecosystem.
Meanwhile, Peter Thiel-backed ETHZilla has begun unwinding a strategy that once placed it among the most aggressive corporate holders of Ethereum, selling $74.5 million worth of ETH and indicating a clear shift away from a pure crypto treasury model.
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