Ethereum’s current market sentiment remains mixed. While on-chain adoption and institutional interest continue to grow, ETH’s price has struggled to reflect these improvements. Ether is trading near $2,924, down more than 12% over the past year, suggesting that strengthening fundamentals have yet to translate into short-term price momentum.

Despite this disconnect, analysts and industry leaders believe Ethereum’s fundamentals are steadily improving beneath the surface.

Why Ethereum’s TVL Could Surge in 2026?

Joseph Chalom, co-CEO of Sharplink Gaming, believes Ethereum’s total value locked (TVL) could increase by as much as 10× in 2026. His outlook is driven by the rapid expansion of stablecoins and the growing adoption of real-world asset (RWA) tokenization on-chain.

The stablecoin market is expected to grow from approximately $308 billion to $500 billion by the end of next year. With more than half of stablecoin activity already occurring on Ethereum, this expansion could significantly boost network usage and capital inflows.

Beyond stablecoins, Chalom expects tokenized real-world assets to reach $300 billion in 2026, as major financial institutions move from pilot programs to full-scale on-chain fund offerings. Firms such as BlackRock, JPMorgan, and Franklin Templeton are already expanding their blockchain presence, reinforcing Ethereum’s position as the preferred settlement layer.

Ethereum’s Economic Security Hits New Highs

Supporting the institutional adoption narrative, Ethereum’s network security has quietly grown at scale. According to Milk Road, Ethereum has gone from zero ETH staked in 2020 to more than 32 million ETH staked in 2025, securing over $105 billion in economic value.

Validator participation has also surged, rising from zero to more than one million active validators. While Bitcoin demonstrates security through hashrate, Ethereum showcases strength through economic security—an increasingly important factor for institutional investors.

Wall Street Tokenization Could Fuel ETH’s Upside

Fundstrat co-founder Tom Lee believes Wall Street’s push to tokenize equities and financial instruments will directly benefit Ethereum. He argues that Ethereum’s neutral architecture, strong uptime, and deep developer ecosystem make it the natural choice for institutional tokenization.

Lee has reiterated bullish price targets, suggesting ETH could reach $7,000–$9,000 in early 2026, with the potential to climb toward $20,000 over the longer term if adoption accelerates. He has also suggested Ethereum could eventually challenge Bitcoin’s dominance as real-world use cases expand.

Crypto analyst Christopher Perkins echoed this view, noting that institutions will favor blockchains offering reliability, security, and effective risk management—areas where Ethereum continues to lead.

ETH Price Lags, but the 2026 Outlook Remains Strong

Despite improving fundamentals, ETH’s price remains under pressure, trading near $2,900 and down more than 12% year-over-year. Additionally, analyst Benjamin Cowen warns that broader market conditions, particularly Bitcoin’s cycle, could delay a major Ethereum breakout.

Still, with rising TVL, expanding institutional adoption, and strengthening network security, Ethereum’s setup heading into 2026 appears increasingly robust. The foundation seems to be forming not for speculative hype, but for sustained, utility-driven growth.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.