Ethereum's Total Value Locked (TVL) Could Expand 10× by 2026 with Institutional Support

Ethereum's total value locked (TVL) could experience a tenfold increase in 2026, primarily driven by enhanced institutional involvement and the emergence of new use cases, according to Joseph Chalom, co-CEO of Sharplink Gaming.

Key Takeaways:

Ethereum's TVL has the potential to grow 10 times by 2026 as institutions and tokenized assets transition to on-chain environments.
The stablecoin market, which is projected to grow toward $500 billion, is anticipated to significantly influence Ethereum's activity.
Despite increasing adoption trends, Ether's price continues to show weakness.

This prediction emerges as major financial institutions bolster their engagements with public blockchains and as investments in tokenized assets gain momentum.

Sharplink Gaming holds the position of the second-largest public Ethereum treasury firm, managing 797,704 ETH valued at approximately $2.33 billion, according to Ethereum Treasuries data.

Ethereum TVL Could Surge 10× in 2026 as Institutional Adoption Grows

Ethereum's TVL Set for Growth Amid Stablecoin Expansion

Chalom indicated that the upcoming phase of Ethereum's advancement would rely less on retail speculation and more on stablecoins, tokenized assets, and the establishment of institutional infrastructure on-chain.

In a recent post on X, Chalom forecasted that the stablecoin market would reach the $500 billion mark by the end of next year, rising from about $308 billion currently—a substantial increase of approximately 62%.

He argued that since more than half of stablecoin transactions currently occur on Ethereum, continued issuance and transaction growth could significantly enhance the network's TVL.

Beyond stablecoins, Chalom identified tokenized real-world assets (RWAs) as a vital growth factor. He anticipates the tokenized RWA market will expand to $300 billion by 2026, describing this transition as a shift from isolated products to complete fund complexes represented on-chain.

In the past year, major firms such as JPMorgan, Franklin Templeton, and BlackRock have increased their presence in tokenization, signaling a growing acceptance of blockchain within traditional finance.

Currently, Ethereum's TVL is about $68.2 billion, according to DeFiLlama. A substantial increase in TVL would likely indicate enhanced institutional engagement rather than just speculative DeFi trends.

A rising TVL is often seen as a reflection of network utility and capital commitment—key elements that influence long-term market confidence.

However, Ethereum's price performance has not mirrored these adoption trends. Ether is down over 12% in the past year, trading near $2,924, according to CoinMarketCap.

Crypto analyst Benjamin Cowen has recently indicated that Ether is not likely to reach new highs soon due to broader market dynamics linked to Bitcoin’s cycle.

Potential Increase in Ethereum Holdings by Sovereign Wealth Funds

Chalom is focusing on structural demand instead of short-term price fluctuations. He predicts that sovereign wealth funds are likely to amplify their Ethereum holdings and tokenization engagement five to ten times within the next year as competition intensifies among large investors.

He noted that what was once considered the safest strategy—staying on the sidelines—is starting to shift as more players enter the market.

Additionally, Chalom foresees that on-chain AI agents and prediction markets could gain widespread recognition in 2026 and contribute to further activity within Ethereum's environment.

In another update, ETHZilla, which is backed by Peter Thiel, has begun to unwind its strategy that made it one of the most aggressive corporate holders of Ethereum, having sold $74.5 million worth of ETH, thus signaling a clear departure from a pure crypto treasury approach.