Joseph Chalom, CEO of Sharplink, offered optimistic predictions for the future of Ethereum (ETH), highlighting a significant increase in total value locked (TVL) within the network over the coming year.
Stablecoin Expansion and Institutional Interest
According to a report According to CoinMarketCap, Chalom predicts that the stablecoin market will reach $500 billion by December 2026. Currently, the total market capitalization of stablecoins stands at approximately $308.46 billion, suggesting a 62% growth from current figures.
Given that Ethereum is responsible for processing more than half of all stablecoin transactions on various blockchain networks, the planned expansion of stablecoin issuance and transaction volume is expected to significantly increase the network’s TVL.
Chalom further predicts that the token market real world assets (RWA) will also experience substantial growth, potentially reaching a total value of $300 billion next year.
This is expected to go beyond the tokenization of individual securities and funds to encompass entire fund complexes, thereby increasing Ethereum’s relevance in the financial ecosystem.
The key to this expected growth is the growing involvement of major financial institutions in the traditional finance like BlackRock, which has shown increased interest in blockchain technologies over the past year. Chalom predicts that this could serve as a catalyst for moving significant assets to Ethereum’s infrastructure.
Can Ethereum overcome pricing challenges?
Increasing total value locked generally indicates increased network usage, which can strengthen market sentiment and influence Ethereum’s price dynamics. Currently, data shows ETH TVL at approximately $68.20 billion.
Crypto analyst Benjamin Cowen recently expressed skepticism that Ethereum will reach new price highs in 2026, especially in light of Bitcoin (BTC) market conditions.
However, Chalom predicts that sovereign wealth fund holdings and tokenization efforts on Ethereum could increase five to tenfold in the coming year.
This potential increase is attributed to competitive pressures that could encourage institutional investorswho were previously hesitant about exposure to cryptocurrencies, to reconsider their strategies as peer adoption accelerates.
Additionally, Chalom believes that the integration of on-chain artificial intelligence (AI) agents and prediction markets will gain traction in 2026, further driving activity and adding value to the Ethereum ecosystem.
Ultimately, the Sharplink CEO highlighted that the convergence of institutional interests from traditional financial firms, expanding applications, and the involvement of sovereign wealth funds could significantly position Ethereum for impressive TVL growth in the near future.
Currently, Ethereum is trading at around $2,930, representing a 13% year-to-date decline for the leading altcoin. Compared to its all-time high of $4,964 reached earlier this year, the cryptocurrency is currently trading 40% below that level.
Featured image of DALL-E, chart by TradingView.com
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