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

Original Author: Vivek Raman, Etherealize

Original Translation: Saoirse, Foresight News

Editor’s Note: As we enter 2026, while global financial institutions are still seeking definitive pathways for digital transformation, Ethereum has quietly become the core arena for institutional investments, supported by a decade of security, scalable technology, and a clear regulatory environment. From JPMorgan deploying money market funds on public chains, Fidelity integrating asset management into Layer 1 networks, to the U.S. “GENIUS Act” clearing regulatory hurdles for stablecoins, and platforms like Coinbase and Robinhood building dedicated blockchains based on Layer 2 — a series of actions validate Ethereum’s transformation from a “technical testing ground” to a “global financial infrastructure.” In this analysis, Etherealize’s Vivek Raman not only dissects the underlying logic of Ethereum becoming the “best business platform,” but also presents predictions of “three tracks of tokenized assets, stablecoins, and ETH prices achieving 5x growth.” His interpretations of institutional holding trends and the inflection point of the financial system’s “blockchainization” may provide crucial references for understanding the direction of the crypto market and financial transformation in the new year.

Over the past decade, Ethereum has established itself as the safest and most reliable blockchain platform adopted by global institutions.

Ethereum’s technology has achieved scalable applications, precedents for institutional use have been set, the global regulatory environment is open to blockchain infrastructure, and the development of stablecoins and asset tokenization is bringing about fundamental changes.

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

After ten years of application promotion, stable operation, global popularization, and high availability assurance, Ethereum has become the preferred choice for institutions deploying blockchain. Next, let’s review the key journey over the past two years that has allowed Ethereum to gradually become the default platform for tokenized assets.

Finally, we will present predictions for Ethereum in 2026: tokenization scale, stablecoin scale, and ETH prices are all expected to achieve 5x growth. The stage for Ethereum’s revival has been set, and the timing for various enterprises to adopt Ethereum’s infrastructure is now ripe.

Ethereum: The Core Platform for Tokenized Assets

The transformation of assets through blockchain is akin to the reshaping of information through the internet — enabling assets to be digitized, programmable, and globally interoperable.

Asset tokenization digitizes assets, data, and payments by integrating them into the same infrastructure, thus upgrading business processes comprehensively. Stocks, bonds, real estate, and other assets and funds will circulate at internet speed. This is a significant upgrade that the financial system should have achieved long ago, and now, global public blockchains like Ethereum are finally making this vision a reality.

Asset tokenization is rapidly shifting from a popular concept to a fundamental upgrade of business models. Just as no company would abandon the internet to revert to the era of fax machines, once financial institutions experience the efficiency, automation, and speed advantages of globally shared blockchain infrastructure, they will not revert to traditional models. The tokenization process will be irreversible.

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

By 2026, the “experimental phase” of asset tokenization will officially end, and the industry will enter the deployment phase. Major institutions are directly launching flagship products on the Ethereum platform to access global liquidity.

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

• JPMorgan has directly deployed a money market fund on Ethereum, becoming one of the first banks to adopt public blockchain directly;
• Fidelity has launched a money market fund on Ethereum Layer 1, integrating asset management and operational processes into the blockchain system;
• Apollo has launched a private credit fund ACRED on public blockchain, where Ethereum and its Layer 2 have the highest liquidity;
• BlackRock, as one of the most proactive advocates of the “everything tokenized” concept, has led the institutional asset tokenization wave by launching the tokenized money market fund BUIDL on Ethereum;
• Amundi (Europe’s largest asset management company) has tokenized its euro-denominated money market fund on Ethereum;
• BNY Mellon (the oldest bank in the U.S.) has tokenized a AAA-rated collateralized loan obligation (CLO) fund on the Ethereum platform;
• Baillie Gifford (one of the largest asset management companies in the UK) will launch its first similar tokenized bond fund on Ethereum and its Layer 2 network.

Ethereum: The Core Blockchain for Stablecoins

Stablecoins are the first clear example of achieving “product-market fit” in the field of asset tokenization — by 2025, the scale of stablecoin transfers had surpassed $10 trillion. Stablecoins are essentially tokenized dollars, akin to a “software upgrade for money,” enabling dollars to circulate at internet speed and possess programmable features.

The year 2025 is a pivotal year for the development of stablecoins and public blockchains: the U.S. “GENIUS Act” (also known as the “Stablecoin Act”) was officially passed. This act established a regulatory framework for stablecoins and provided a “green light” for the underlying public blockchain infrastructure of stablecoins.

Even before the passage of the “GENIUS Act,” Ethereum’s adoption rate for stablecoins was already far ahead. Currently, 60% of stablecoins are deployed on Ethereum and its Layer 2 networks (this ratio will reach 90% when accounting for future Ethereum Virtual Machine-compatible chains that may become Layer 2). The enactment of the “GENIUS Act” marks Ethereum’s formal “opening for commercial applications” — institutions gain regulatory permission to deploy their own stablecoins on public blockchains.

The widespread adoption of email and websites is fundamentally tied to their connection to a unified global internet (rather than decentralized internal networks). Similarly, stablecoins and all tokenized assets can only fully realize their utility and network effects within a unified global public blockchain ecosystem.

As a result, the explosive growth of stablecoins has only just begun. A typical case is that SoFi became the first bank to issue stablecoins (SoFiUSD) on a permissionless public blockchain, ultimately choosing the Ethereum platform.

This is just the “tip of the iceberg” for stablecoin development. Investment banks and new banks are exploring issuing their own stablecoins individually or in alliance, while fintech companies are advancing the deployment and integration of stablecoins. The digitization of dollars on public blockchains has fully commenced, and Ethereum is the default platform in this process.

Ethereum: Building Dedicated Blockchains

Blockchain is not a “one-size-fits-all” tool. Global financial markets need customized adaptations based on regional differences, regulatory systems, and customer groups. This is why Ethereum has been designed with high security as its core goal since its inception, achieving a high level of customization through flexible Layer 2 blockchains that can be deployed on top.

Just as every business has its own dedicated website, application, and customized environment on the internet, many businesses will also have their own dedicated Layer 2 blockchains within the Ethereum ecosystem in the future.

This is not a theoretical framework, but rather practical applications that have already been implemented. Ethereum Layer 2 has established precedents for institutional applications, achieving scalable deployment and becoming the core support for Ethereum’s “business-friendly” characteristics. Here are some examples:

• Coinbase has built the Base blockchain on Ethereum Layer 2, leveraging Ethereum’s security and liquidity while creating new revenue streams for itself;
• Robinhood is constructing a dedicated blockchain that will integrate tokenized stocks, prediction markets, and various assets, built on Ethereum Layer 2 technology;
• SWIFT (the global bank information transmission network) is utilizing the Ethereum Layer 2 network Linea to conduct blockchain-based settlement operations;
• JPMorgan has deployed a tokenized deposit business on the Ethereum Layer 2 network Base;
• Deutsche Bank is building a public permissioned blockchain network based on Ethereum Layer 2, laying the groundwork for more banks to establish Layer 2 networks…

The value of Layer 2 lies not only in customization but also in being the best business model in the blockchain domain. Layer 2 integrates Ethereum’s global security while achieving over 90% profit margins through operations, opening up new revenue sources for enterprises.

For institutions adopting blockchain technology, this is the best way to “have your cake and eat it too” — leveraging Ethereum’s security and liquidity while maintaining their own profit margins, all while operating in a dedicated environment within the Ethereum ecosystem. Robinhood’s decision to build its own blockchain based on Ethereum Layer 2 stems from this consideration: “Building a truly decentralized secure chain is extremely difficult… and with Ethereum, we can gain default security assurance.”

The global financial market will not concentrate on a single blockchain, but the global financial system can achieve synergy through interconnected networks — and this network is the Ethereum and its Layer 2 ecosystem.

Changes in the Regulatory Environment

Without regulatory support, a fundamental upgrade of the global financial system cannot be discussed. Financial institutions are not technology companies and cannot achieve innovation through “rapid trial and error.” The circulation of high-value assets and funds requires a comprehensive regulatory framework, and the U.S. is playing a leading role in this area:

• Under the leadership of SEC Chairman Paul Atkins, the first supportive regulatory system for innovation has been officially established since Ethereum’s inception in 2015. Institutions have actively embraced asset tokenization, and the financial system is preparing to migrate to digital infrastructure. Atkins himself has stated that “all markets in the U.S. will be operating on-chain within the next two years.”
• The U.S. Congress also supports the responsible adoption of blockchain technology. The “GENIUS Act,” passed in 2025 (mentioned earlier in the “Stablecoins” section), along with the upcoming “CLARITY Act” (which will establish a comprehensive framework for asset tokenization and public blockchain infrastructure), has included blockchain within the legal system, providing clear guidance for financial institutions to apply this technology.
• The DTCC (Depository Trust & Clearing Corporation) is not a government agency, but it is the core infrastructure operator of the U.S. securities market. This organization has fully embraced asset tokenization, allowing assets held at the DTC to circulate on public blockchains.

Over the past decade, the blockchain ecosystem has long been in a “regulatory grey area,” suppressing its institutional application potential. Now, under U.S. leadership, the regulatory environment has shifted from “resistance” to “support.” The stage for Ethereum to become the “best business platform” and achieve vigorous development has been fully established.

ETH: Institutional Grade Treasury Asset

Ethereum has established its status as the “safest blockchain,” thus becoming the default choice for institutions. Based on this, ETH will be revalued in 2026, positioning it alongside BTC as an “institutional-grade value storage asset.”

The blockchain ecosystem will feature more than one value storage asset: BTC has established its “digital gold” status, while ETH has become “digital oil” — a value storage asset that is income-generating, practical, and driven by underlying ecosystem economic activity.

MicroStrategy, as the company holding the most Bitcoin, has led the process of BTC becoming a value storage asset. Over the past four years, MicroStrategy has continuously included BTC as treasury assets, advocating for the value concept of BTC and making it a core category of institutional digital asset holdings.

Currently, four “MicroStrategy-like” companies have emerged in the Ethereum ecosystem, driving ETH towards similar breakthroughs:

• 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 supply of BTC. The four companies mentioned have cumulatively purchased approximately 4.5% of the circulating supply of ETH over the past six months — and this process has only just begun.

As these four companies continue to incorporate ETH into their balance sheets, the proportion of institutional holdings in these ETH-holding companies is rapidly increasing, and ETH is expected to be revalued, positioning it alongside BTC as an institutional-grade value storage asset.

2026 Ethereum Predictions: 5x Growth

Tokenized Assets: Growing 5x to $100 Billion

In 2025, the total value of tokenized assets on the blockchain increased from approximately $6 billion to over $18 billion, with 66% deployed on Ethereum and its Layer 2 networks.

The global financial system has only just begun its asset tokenization process, with institutions like JPMorgan, BlackRock, and Fidelity adopting Ethereum as the default platform for high-value tokenized assets.

We predict that by 2026, the total scale of tokenized assets will achieve 5x growth, reaching nearly $100 billion, with the vast majority deployed on the Ethereum network.

Stablecoins: Growing 5x to $1.5 Trillion

Currently, the total scale of stablecoins on public blockchains stands at $308 billion, with approximately 60% deployed on Ethereum and its Layer 2 networks (this ratio will reach 90% if we include Ethereum Virtual Machine-compatible chains that may become Layer 2 in the future).

Stablecoins have become a strategic asset for the U.S. government. The U.S. Treasury has repeatedly stated that stablecoins are a core initiative to solidify the dollar’s dominance in the 21st century. Currently, the total circulation of dollars is $22.3 trillion. With the implementation of the “GENIUS Act” and the large-scale application of stablecoins, it is expected that 20%-30% of dollars will migrate to public blockchains.

We predict that by 2026, the total market value of stablecoins will achieve 5x growth, reaching $1.5 trillion, with Ethereum playing a leading role in this process.

ETH: Growing 5x to $15,000

ETH is rapidly evolving into an institutional-grade value storage asset alongside BTC. ETH serves as a “call option” for the growth of blockchain technology, and its value increase will benefit from the following trends:

• The scale expansion of asset tokenization
• The widespread application of stablecoins
• The institutional adoption of blockchain technology
• The financial system’s upgrade to the internet era, marking the “ChatGPT moment” (referring to the inflection point of industry transformation brought about by technological breakthroughs)

Holding ETH is equivalent to holding a share of the “new financial internet.” The logic of its value growth is clear: increases in user scale, asset scale, application count, Layer 2 networks, and transaction frequency will all drive the value of ETH upward.

We predict that by 2026, ETH will achieve at least 5x value growth (with a market cap reaching $2 trillion, comparable to the current market cap of BTC), ushering in ETH’s “NVIDIA moment” (referring to a critical phase of explosive growth similar to NVIDIA’s due to the AI wave).

Ethereum: The Best Platform for Conducting Business

By 2026, discussions around “why adopt blockchain” will be a thing of the past. Institutions are now fully competing in asset tokenization, stablecoin applications, and customized blockchain deployments, marking the structural upgrade of the global financial system.

When selecting blockchain infrastructure, institutions prioritize factors such as long-term operational records, application precedents, security, liquidity, availability, and risk levels — and Ethereum excels in all dimensions. If enterprises have the following needs, Ethereum will be the ideal choice:

• Looking to improve profit margins? They can reduce costs through asset tokenization, lower fees using stablecoins, and build dedicated blockchains based on Ethereum.
• Seeking to open new revenue streams? They can construct structured products on the Ethereum platform, launch new types of assets, and issue their own stablecoins.
• Aiming for a digital upgrade of their business? They can leverage Ethereum to optimize operational processes, automate accounting and payments, and reduce manual reconciliation work.

2025 is a turning point for Ethereum’s development: infrastructure upgrades have been completed, institutional pilot projects are being scaled, and the regulatory environment has shifted to be favorable.

In 2026, the global financial system will welcome its “internet moment” — and this transformation will occur on Ethereum, the best platform for conducting business.