Ethereum’s total value locked (TVL) could grow tenfold in 2026 as institutional involvement deepens and new on-chain use cases take hold, according to Joseph Chalom, co-CEO of Sharplink Gaming.
The prediction comes as major financial players continue to move real-world assets, stablecoins, and fund infrastructure onto public blockchains—areas where Ethereum remains the dominant platform.
Institutions and Stablecoins Could Drive the Next Wave
Chalom believes Ethereum’s next phase of growth will be led less by retail speculation and more by stablecoins, tokenized assets, and institutional-grade infrastructure.
In a post on X, he forecast that the global stablecoin market could reach $500 billion by the end of next year, up from roughly $308 billion today. With more than half of stablecoin activity already happening on Ethereum, continued issuance and transaction growth could significantly lift the network’s TVL.
Tokenized real-world assets are another key catalyst. Chalom expects the RWA market to expand to $300 billion in 2026, describing a shift from experimental pilots to fully tokenized fund structures operating on-chain.
Over the past year, firms such as JPMorgan, Franklin Templeton, and BlackRock have expanded both pilot programs and live tokenization products, signaling growing confidence from traditional finance.
Ethereum’s Adoption Grows, but Price Lags
Ethereum’s TVL currently sits around $68.2 billion, according to DeFiLlama. A sharp rise from here would likely reflect increased institutional capital rather than speculative DeFi activity alone.
TVL is often viewed as a measure of how much capital and utility a network attracts, which can influence long-term confidence—even if prices don’t immediately follow.
For now, Ether’s price has lagged behind the adoption story. ETH is down more than 12% over the past year and is trading near $2,924, according to CoinMarketCap. Analyst Benjamin Cowen recently said new all-time highs may still be some way off, given broader market dynamics tied to Bitcoin’s cycle.
Sovereign Funds and New Use Cases in 2026
Chalom is focused on structural demand rather than short-term price swings. He expects sovereign wealth funds to increase their exposure to Ethereum and tokenized assets by five to ten times in 2026, as competition among large institutional allocators intensifies.
Staying on the sidelines, he argues, is becoming less defensible as on-chain markets mature.
He also expects on-chain AI agents and prediction markets to gain wider adoption next year, adding new layers of activity to Ethereum’s ecosystem.
Not all players are doubling down, however. Peter Thiel-backed ETHZilla recently sold $74.5 million worth of ETH, signaling a shift away from its once-aggressive crypto treasury strategy.
Overall, while Ethereum’s price may still be under pressure, growing institutional adoption and expanding on-chain use cases could set the stage for a dramatic rise in network activity in 2026.
