Joseph Chalom, the CEO of Sharplink, has outlined an optimistic forecast for Ethereum’s (ETH) future, emphasizing a significant increase in the total value locked (TVL) within the network in the coming year.
Stablecoin Expansion And Institutional Interest
According to a report from CoinMarketCap, Chalom anticipates that the stablecoin market will soar to $500 billion by December 2026. Currently, the total market capitalization for stablecoins stands at approximately $308.46 billion, suggesting a 62% growth from current figures.
Given that Ethereum is responsible for processing over half of all stablecoin transactions across various blockchain networks, the projected expansion in stablecoin issuance and transaction volume is set to significantly elevate the network’s TVL.
Chalom further predicts that the market for tokenized real-world assets (RWAs) will also witness substantial growth, potentially reaching a total value of $300 billion next year.
This is expected to move beyond tokenizing individual securities and funds to encompass complete fund complexes, thereby increasing Ethereum’s relevance in the financial ecosystem.
Key to this expected growth is the increasing involvement of major financial institutions from traditional finance such as BlackRock, which has shown heightened interest in blockchain technologies over the past year. Chalom predicts that it could serve as a catalyst for moving significant assets onto Ethereum’s infrastructure.
Can Ethereum Overcome Price Challenges?
The rise in total value locked usually indicates increased network utilization, which can bolster market sentiment and may influence Ethereum price dynamics. Currently, data shows ETH’s TVL at approximately $68.20 billion.
Crypto analyst Benjamin Cowen recently expressed skepticism about Ethereum reaching new price highs in 2026, particularly in light of Bitcoin’s (BTC) market conditions.
However, Chalom anticipates that sovereign wealth fund holdings and tokenization efforts on Ethereum could grow five- to tenfold in the coming year.
This potential increase is attributed to competitive pressures that may encourage institutional investors, who have previously been hesitant about cryptocurrency exposure, to reconsider their strategies as peer adoption accelerates.
Moreover, Chalom believes that the integration of on-chain artificial intelligence (AI) agents and prediction markets will gain mainstream traction in 2026, further driving activity and adding value to the Ethereum ecosystem.
Ultimately, Sharplink’s CEO stressed that the convergence of institutional interest from traditional finance firms, expanded applications, and the involvement of sovereign funds could significantly position Ethereum for impressive TVL growth in the near future.
Currently, Ethereum is trading at around $2,930, marking 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 this level.
Featured image from DALL-E, chart from TradingView.com
