Ethereum 2026: 5x Growth Window Opens, Institutions Snatch Up, ETH Revaluation

Original author: Vivek Raman, Etherealize

Original translation: Saoirse, Foresight News

Editor’s Note：At the start of 2026, while global financial institutions are still searching for a reliable path for digital transformation, Ethereum has quietly become the core battleground for institutional allocations—backed by a decade of accumulated security, scalable technical support, and a clearly defined regulatory environment. From JPMorgan deploying money market funds on public chains, to Fidelity bringing asset management into Layer1 networks, to the U.S. “GENIUS Act” clearing regulatory hurdles for stablecoins, and then to platforms like Coinbase and Robinhood building dedicated blockchains using Layer2—this sequence of moves confirms Ethereum’s evolution from a “technical experiment ground” into “global financial infrastructure.” In this analysis, Vivek Raman of Etherealize not only dissects the underlying logic of why Ethereum is becoming the “best business platform,” but also offers forecasts for “5x growth across three tracks”: tokenized assets, stablecoins, and the ETH price. His interpretation of institutional holdings trends and the inflection point of “blockchainization” in the financial system may provide key reference points for understanding the direction of the crypto market and financial changes in the new year.

Over the past decade, Ethereum has firmly established its position as the safest and most reliable blockchain platform for global institutions to adopt.

Ethereum technology has achieved large-scale deployment, institutional use cases are already in place, the global regulatory environment is broadly welcoming toward blockchain infrastructure, and the rise of stablecoins alongside the process of asset tokenization is bringing fundamental change.

Therefore, starting in 2026, Ethereum will become the best platform for conducting business.

After a decade of application promotion, stable operations, global adoption, and high-availability guarantees, Ethereum has become the first choice for institutions deploying blockchain. Next, let’s review the key journey of how, over the past two years, Ethereum has gradually become the default platform for tokenized assets.

Finally, we will provide our 2026 forecast for Ethereum: tokenized asset scale, stablecoin scale, and the ETH price are all expected to achieve 5x growth. The stage for Ethereum’s revival is set, and the timing for enterprises to adopt Ethereum infrastructure is already ripe.

Ethereum: The core platform for tokenized assets

The transformation blockchain is bringing to the asset space is like how the internet has reshaped the information space—enabling assets to become digital, programmable, and globally interoperable.

Asset tokenization digitizes assets by integrating assets, data, and payments into a single infrastructure, thereby fully upgrading business processes. Stocks, bonds, real estate, and other assets—as well as capital—can flow at internet speed. This is a major upgrade the financial system has long needed, and now, with global public blockchains like Ethereum, this vision is finally becoming reality.

Asset tokenization is rapidly shifting from a hot concept to a fundamental business-model upgrade. Just as no enterprise would give up the internet and revert to the fax-machine era, once financial institutions experience the efficiency, automation, and speed advantages brought by globally shared blockchain infrastructure, they will not go back to traditional models—tokenization is irreversible.

Today, tokenization of the vast majority of high-value assets is completed on Ethereum—because Ethereum is the most neutral and secure global infrastructure. Like the internet, it is not controlled by any single entity and is open to all users.

By 2026, the “trial stage” of asset tokenization will be officially over, and the industry will enter the deployment phase. Major institutions are rolling out flagship products directly on the Ethereum platform to tap global liquidity.

Below are some examples of institutions conducting asset tokenization on Ethereum:

• JPMorgan: Deploys money market funds directly on Ethereum, becoming one of the first banks to adopt a public blockchain;
• Fidelity: Launches money market funds on Ethereum Layer1 (the first-layer network), integrating asset management and operational workflows into the blockchain system;
• Apollo: Launches the private credit fund ACRED on a public blockchain, where Ethereum and its Layer2 (second-layer network) have the highest liquidity;
• BlackRock: As one of the most active advocates of the “tokenization of everything” concept, it leads the institutional asset tokenization wave by launching tokenized money market funds BUIDL on Ethereum;
• Amundi (the largest asset manager in Europe): Tokenizes its euro-denominated money market funds on the Ethereum platform;
• BNY Mellon (America’s oldest bank): Tokenizes a AAA-rated collateralized loan obligation (CLO) fund on the Ethereum platform;
• Baillie Gifford (one of the largest asset managers in the UK): Will launch its first tokenized bond fund of this kind on Ethereum and its Layer2 network.

Ethereum: The core blockchain for stablecoins

Stablecoins are the first clear “product-market fit” case in the asset tokenization space—In 2025, the transfer volume of stablecoins surpassed $100 trillion. In essence, stablecoins are tokenized dollars—like a “software upgrade” for money—allowing dollars to move at internet speed and to be programmable.

2025 is a pivotal year for stablecoin and public blockchain development: the U.S. “GENIUS Act” (also known as the “Stablecoin Act”) was officially passed. This law instantly establishes a regulatory framework for stablecoins, while turning “green lights” for the underlying public blockchain infrastructure that stablecoins rely on.

Even before the passage of the GENIUS Act, Ethereum’s stablecoin adoption was already far ahead. Today, 60% of stablecoin deployments are on Ethereum and its Layer2 networks (if you include the future possibility of an Ethereum Virtual Machine-compatible chain that could become an Ethereum Layer2, this ratio would reach 90%). The enactment of the GENIUS Act marks Ethereum’s official shift to “open commercial applications”—institutions can obtain regulatory permission to deploy their own stablecoins on public blockchains.

The reason email and websites achieved mass adoption is that they connected to a unified global internet (rather than fragmented internal networks). Similarly, stablecoins and all tokenized assets can fully realize their utility and network effects only within a unified global public blockchain ecosystem.

Therefore, the explosive growth of stablecoins is only just beginning. A typical case is that SoFi, a U.S. national bank, became the first bank to issue stablecoins (SoFiUSD) on a permissionless public blockchain, and ultimately chose the Ethereum platform.

This is just the “tip of the iceberg” of stablecoin development. Investment banks and new-age banks are exploring issuing their own stablecoins either individually or as part of consortia, while fintech companies are also pushing stablecoin deployment and integration. The digitization of dollars on public blockchains is fully underway—and Ethereum is the default platform for this process.

Ethereum: Building dedicated blockchains

Blockchain is not a “one-size-fits-all” tool. Global financial markets need tailored adaptation based on regional differences, regulatory regimes, and customer segments. That is why, from the beginning, Ethereum was designed with high security as a core goal, and achieved highly customizable deployments through “Layer2 blockchains” that can be flexibly built on top.

Just as every company on the internet has its own dedicated website, applications, and tailored environment, in the future many enterprises will also have their own dedicated Layer2 blockchains within the Ethereum ecosystem.

This is not a theoretical architecture; it is real, deployed use today. Ethereum Layer2 has already established institutional application precedents, enabling large-scale deployments, and it is a core support for Ethereum’s “business-friendly” characteristics. The following are some examples:

• Coinbase built the Base blockchain on Ethereum Layer2, leveraging Ethereum’s security and liquidity while also opening up a new revenue stream for itself;
• Robinhood is building a dedicated blockchain that will integrate tokenized stocks, prediction markets, and various other assets, and it is built on Ethereum Layer2 technology;
• SWIFT (Society for Worldwide Interbank Financial Telecommunication) (the global interbank financial messaging network) uses the Ethereum Layer2 network Linea to conduct blockchain-based settlement business;
• JPMorgan has deployed tokenized deposit services on Ethereum Layer2 network Base;
• Deutsche Bank is building a public permissioned blockchain network based on Ethereum Layer2, laying the groundwork for Layer2 networks for more banks…

Layer2’s value is not only in customization; it is also the best business model in the blockchain space. Layer2 integrates Ethereum’s global security and, through operations, can achieve over 90% profit margins—opening up entirely new revenue sources for enterprises.

For institutions adopting blockchain technology, this is the “best of both worlds”—they can rely on Ethereum’s security and liquidity while maintaining their profit margins, and they can operate within a dedicated environment in the Ethereum ecosystem. Robinhood’s decision to build its own blockchain on Ethereum Layer2 is precisely for this reason: “Building a truly decentralized secure chain is extremely difficult… but with Ethereum, we can assume secure protection by default.”

Global financial markets will not concentrate on a single blockchain, but the global financial system can achieve coordination by relying on interoperable networks—and that network is the Ethereum ecosystem and its Layer2.

Changes in the regulatory environment

Without regulatory support, a fundamental upgrade of the global financial system is impossible. Financial institutions are not technology companies and cannot achieve innovation through “rapid trial and error.” The transfer of high-value assets and capital requires a robust regulatory framework, and the United States is playing a leading role in this area:

• Under the leadership of Paul Atkins, Chair of the U.S. SEC, since Ethereum’s birth in 2015, the first regulatory system that supports innovation has been formally established. Institutions have actively embraced asset tokenization, and the financial system is preparing to migrate to digital infrastructure; Atkins himself has also said, “Within the next two years, all U.S. markets will be operating on-chain.”
• The U.S. Congress also supports the responsible adoption of blockchain technology. The “GENIUS Act” passed in 2025 (mentioned above in the “Stablecoins” section) and the forthcoming “CLARITY Act” (which will establish a comprehensive framework for asset tokenization and public blockchain infrastructure) have brought blockchain into the legal system, providing clear guidance for financial institutions to apply this technology.
• The Depository Trust & Clearing Corporation (DTCC), while not a government agency, is the core infrastructure operator of the U.S. securities market. The institution has fully embraced asset tokenization and allows assets held at Depository Trust Company (DTC) through trust companies to circulate on public blockchains.

Over the past decade or more, blockchain ecosystems have long existed in a “regulatory gray zone,” suppressing the potential for institutional-grade applications. Now, led by the United States, the regulatory environment has shifted from “obstacles” to “tailwinds.” The stage for Ethereum to become the “best business platform” and thrive is fully set.

ETH: Institutional treasury-like assets

Ethereum has established its status as the “safest blockchain,” making it the default choice for institutional adoption. Based on this, in 2026, ETH will be repriced, and alongside BTC, it will become an “institutional-grade value storage asset.”

The blockchain ecosystem will have more than one value storage asset: BTC has established its “digital gold” status, while ETH becomes “digital oil”—a value storage asset with yield, utility, and an underlying ecosystem-driven economy of activity.

MicroStrategy (Strategy), as the company holding the most Bitcoin, has led BTC in becoming a value storage asset. Over the past four years, MicroStrategy has consistently added BTC to its treasury holdings, promoting the value thesis of BTC and making it a core category in institutional digital asset holdings.

Now, the Ethereum ecosystem has produced four “MicroStrategy-like” firms, pushing ETH toward a similar breakthrough:

• BitMine Immersion (ticker: BMNR), operated by Tom Lee;
• Sharplink Gaming (ticker: SBET), operated by Joe Lubin and Joseph Chalom;
• The Ether Machine (ticker: ETHM), operated by Andrew Keys;
• Bit Digital (ticker: BTBT), operated by Sam Tabar.

MicroStrategy holds 3.2% of the circulating BTC supply. Meanwhile, the four ETH-holding companies above have collectively purchased about 4.5% of the circulating ETH supply over the past 6 months—and this process is only just beginning.

As these four companies continue to add ETH to their balance sheets, the ownership proportions of these ETH-holding firms by institutions are rising rapidly. ETH is expected to be repriced again, standing alongside BTC as an institutional-grade value storage asset.

Ethereum forecast for 2026: 5x growth

Tokenized assets: 5x growth to $100 billion

In 2025, the total value of tokenized assets on blockchain grew from about $6 billion to more than $18 billion, with 66% deployed on Ethereum and its Layer2 networks.

The global financial system is just beginning the asset tokenization process. Institutions such as JPMorgan, BlackRock, and Fidelity have already adopted Ethereum as the default platform for high-value tokenized assets.

We expect that in 2026, the total market size of tokenized assets will achieve 5x growth, reaching nearly $100 billion, and that the vast majority will be deployed on the Ethereum network.

Stablecoins: 5x growth to $1.5 trillion

Currently, the total stablecoin supply on public blockchains is $308 billion, of which about 60% is deployed on Ethereum and its Layer2 networks (if you include the future possibility of an Ethereum Virtual Machine-compatible chain that could become an Ethereum Layer2, this ratio will reach 90%).

Stablecoins have become a strategic asset for the U.S. government. The U.S. Treasury has repeatedly stated that stablecoins are a core initiative in consolidating the dollar’s dominance in the 21st century. Currently, the total amount of dollars in circulation is $2.23 trillion. With the GENIUS Act taking effect and stablecoins starting large-scale use, it is expected that 20%-30% of dollars will migrate to public blockchains.

We forecast that in 2026, the total market capitalization of stablecoins will achieve 5x growth to reach $1.5 trillion, with Ethereum playing the leading role in this process.

ETH: 5x growth to $1.5 trillion

ETH is rapidly developing into an institutional-grade value storage asset on par with BTC. ETH is a “bullish option” for blockchain technology growth, and its value growth will benefit from these trends:

• Scale expansion of asset tokenization
• Widespread adoption of stablecoins
• Institutional adoption of blockchain
• The “ChatGPT moment” as the financial system upgrades into the internet era (referring to the industry inflection point brought by technological breakthroughs)

Holding ETH is like holding a portion of the equity in the “new financial internet.” The logic for its value growth is clear: as the number of users, the size of assets, the number of applications, Layer2 network growth, and trading frequency all increase, ETH’s value will rise.

We forecast that in 2026, ETH will achieve at least 5x value growth (market cap reaching $2 trillion, roughly comparable to the current market cap of BTC), entering ETH’s “Nvidia moment” (referring to the key phase where Nvidia saw explosive growth due to the AI wave).

Ethereum: The best platform to run a business on

As of 2026, discussions about “why to adopt blockchain” have become a thing of the past. Now, institutions are competing on all fronts for asset tokenization, stablecoin applications, and the deployment of tailored blockchains—while the structural upgrade of the global financial system is already underway.

When institutions choose blockchain infrastructure, key factors include: long-term operational track record, application precedents, security, liquidity, availability, and risk level—and Ethereum performs best across all dimensions. If enterprises need the following, Ethereum will be an ideal choice:

• Boost profit margins? You can reduce costs through asset tokenization, reduce fees by using stablecoins, and build dedicated blockchains based on Ethereum.
• Open up new revenue streams? You can build structured products on the Ethereum platform, launch new types of assets, and issue your own stablecoins.
• Achieve a digital upgrade of business operations? You can optimize operational workflows with Ethereum, automate accounting and payments, and reduce manual reconciliation work.

2025 is a turning point for Ethereum’s development: infrastructure upgrades are complete, institutional pilot projects have scaled and launched, and the regulatory environment has shifted toward tailwinds.

In 2026, the global financial system will experience an “internet moment”—and this transformation will take place on Ethereum, the best platform on which to run a business.