Institutional Adoption Will Drive Ethereum TVL to Reach New Levels in 2026

According to Joseph Chalom, Co-CEO of Sharplink, increased institutional involvement and expansion into various use cases are expected to significantly accelerate Ethereum’s TVL value by 2026. This anticipated growth is driven by the convergence of several major market factors creating positive momentum for the ecosystem.

Stablecoin Growth as the Main Catalyst for Ethereum TVL

The stablecoin market shows a strong growth trajectory, with projections reaching a valuation of $500 billion by the end of next year—up from the current value of around $308 billion, representing an increase of over 60%. Recent data indicates that stablecoin activity is concentrated on Ethereum, with more than 54% of trading volume occurring on this blockchain.

The significant increase in stablecoin liquidity will serve as a foundation for further TVL growth, considering stablecoins are a critical instrument within the DeFi ecosystem. With the expansion of the stablecoin market, greater DeFi activity is likely to flow into Ethereum, creating a multiplier effect on the network’s TVL.

Tokenized Assets (RWA) Unlocking Decoupled Growth Opportunities

The sector of tokenized real-world assets (RWA) is projected to undergo substantial transformation, with the market estimated to reach $300 billion within the next 24 months. This expansion reflects broader adoption by leading financial institutions.

Institutions such as JPMorgan, Franklin Templeton, and BlackRock have demonstrated significant increases in exploiting tokenization technology over the recent period. This strategy includes digital representations of various instruments—from individual stocks and bonds to comprehensive fund portfolios. The growth of the RWA sector will add a new layer of value to Ethereum’s TVL, as traditional assets migrate onto the blockchain.

Ethereum’s Position Among Sovereign Wealth Funds

Chalom anticipates a significant acceleration in Ethereum accumulation by sovereign wealth funds, with estimates of growth by 5-10x next year. This phenomenon reflects a paradigm shift among institutional investors who previously avoided crypto assets.

Sharplink Gaming itself has positioned itself as a major player in the Ethereum ecosystem, holding 797,704 ETH with an approximate value of $2.63 billion—affirming a commitment to the network’s long-term growth. This scale of institutional ownership indicates increasing confidence in Ethereum’s fundamentals.

Technical Data and Price Projections

Ethereum currently records a TVL of around $68 billion across DeFi protocols, reflecting growth from a relatively conservative baseline. With the growth catalysts listed above, the projection of reaching a 10x TVL of ($680 billion by 2026 is now more realistic within the context of ongoing institutional expansion.

The price of Ether )ETH( is currently trading at $3.31K, showing a 2.77% appreciation year-to-date. Price dynamics will continue to be influenced by fundamental developments such as TVL growth, RWA activity, and institutional capital flows into the ecosystem.

Blockchain AI and Market Predictions: A New Frontier

Chalom also identifies emerging narratives that will drive value in Ethereum—particularly autonomous AI agents and prediction markets, which are expected to enter mainstream adoption. These new application categories will open additional growth vectors, expanding use cases and attracting greater value accumulation into the Ethereum ecosystem.