Ethereum 2026: 5x Growth Window Opens, Institutions Rush to Accumulate, ETH Value Reassessment

Original Author: Vivek Raman, Etherealize

Original Compilation: Saoirse, Foresight News

Editor's Note: As the year 2026 begins, while global financial institutions are still searching for a certain path for digital transformation, Ethereum has quietly become the core battlefield for institutional layout, thanks to its decade-long accumulation of security, scalable technical support, and clear regulatory environment. From JPMorgan deploying money market funds on public chains, Fidelity incorporating 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—this series of actions confirms Ethereum's transformation from a "technical testing ground" to "global financial infrastructure." In this analysis, Vivek Raman from Etherealize not only dissects the underlying logic of Ethereum becoming the "best business platform," but also presents predictions of "three tracks with 5x growth" for tokenized assets, stablecoins, and ETH prices. His interpretations of institutional holding trends and the inflection point of the financial system's "blockchainization" may provide key references for understanding the direction of the new year's crypto market and financial transformation.

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 application, institutional use cases have been established, the global regulatory environment is open and welcoming to blockchain infrastructure, and the development of stablecoins and the process of asset tokenization are bringing fundamental changes.

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

After ten years of application promotion, stable operation, global popularity, and high availability assurance, Ethereum has become the first choice for institutions deploying blockchain. Next, let us review the key journey of how Ethereum has gradually become the default platform for tokenized assets over the past two years.

Finally, we will provide predictions for Ethereum in 2026: the scale of tokenization, the scale of stablecoins, and the price of ETH 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 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 become digital, programmable, and globally interoperable.

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

Asset tokenization is rapidly transitioning from a popular concept to a fundamental upgrade of business models. Just as no company would abandon the internet to revert to the fax machine era, once financial institutions experience the efficiency, automation, and speed advantages brought by globally shared blockchain infrastructure, they will not revert to traditional models, and the tokenization process will become 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;
• Fidelity has launched a money market fund on Ethereum Layer 1, incorporating asset management and operational processes into the blockchain system;
• Apollo has launched a private credit fund ACRED on the public blockchain, with the highest liquidity on Ethereum and its Layer 2;
• BlackRock, as one of the most active advocates of the "everything tokenized" concept, has led the wave of institutional asset tokenization by launching a tokenized money market fund BUIDL on Ethereum;
• Amundi (Europe's largest asset management company) has tokenized its euro-denominated money market fund on the Ethereum platform;
• 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 the first tokenized bond fund of its kind on Ethereum and its Layer 2 network.

Ethereum: The Core Blockchain for Stablecoins

Stablecoins are the first clear case of achieving "product-market fit" in the field of asset tokenization—by 2025, the scale of stablecoin transfers has exceeded $10 trillion. Stablecoins are essentially tokenized dollars, equivalent to a "software upgrade for currency," allowing dollars to circulate at internet speed and possess programmable features.

The year 2025 is a key 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 simultaneously signaled a "green light" for the underlying public blockchain infrastructure of stablecoins.

Even before the passage of the "GENIUS Act," Ethereum's stablecoin adoption rate was already far ahead. Currently, 60% of stablecoins are deployed on Ethereum and its Layer 2 networks (if we include Ethereum Virtual Machine-compatible chains that may become Ethereum Layer 2 in the future, this proportion will reach 90%). The introduction of the "GENIUS Act" marks Ethereum's formal "opening for business applications"—institutions are granted regulatory permission to deploy their own stablecoins on public blockchains.

The widespread adoption of email and websites was crucially enabled by access 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.

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

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

Ethereum: Building Dedicated Blockchains

Blockchain is not a "one-size-fits-all" tool. Global financial markets need to be customized according to regional differences, regulatory systems, and customer groups. For this reason, Ethereum has been designed with high security as a core goal since its inception and has achieved a high degree of customization through "Layer 2 blockchains" that can be flexibly deployed on top of it.

Just as every company has its own website, applications, and customized environments on the internet, many companies will also have their own dedicated Layer 2 blockchains within the Ethereum ecosystem in the future.

This is not a theoretical framework but a practical application that has already been implemented. Ethereum Layer 2 has formed institutional use cases, achieving scalable deployment and becoming the core support for Ethereum's "business-friendly" characteristics. Here are some examples:

• Coinbase has built the Base blockchain based on Ethereum Layer 2, leveraging Ethereum's security and liquidity while opening up new revenue streams;
• Robinhood is building a dedicated blockchain that will integrate tokenized stocks, prediction markets, and various assets, based on Ethereum Layer 2 technology;
• SWIFT (the global banking information transmission network) is using the Ethereum Layer 2 network Linea to conduct blockchain-based settlement business;
• 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 foundation 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 space. 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 and operating in a dedicated environment within the Ethereum ecosystem. Robinhood's choice to build its own blockchain based on Ethereum Layer 2 is precisely due to this consideration: "Building a truly decentralized secure chain is extremely difficult… With Ethereum, we can obtain security guarantees by default."

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

The Transformation of 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 innovate through "rapid trial and error." The circulation of high-value assets and funds requires a sound regulatory framework, and the U.S. is playing a leading role in this area:

• Under the leadership of SEC Chairman Paul Atkins, the first regulatory framework supporting 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, "In the next two years, all markets in the U.S. will operate on-chain."
• The U.S. Congress also supports the responsible adoption of blockchain technology. The "GENIUS Act" passed in 2025 (mentioned earlier in the "Stablecoins" section) and the upcoming "CLARITY Act" (which will establish a comprehensive framework for asset tokenization and public blockchain infrastructure) have incorporated blockchain into the legal system, providing clear guidance for financial institutions to apply this technology.
• The Depository Trust & Clearing Corporation (DTCC), although not a government agency, is the core infrastructure operator of the U.S. securities market. This organization has fully embraced asset tokenization, allowing assets deposited with the Depository Trust Company (DTC) to circulate on public blockchains.

Over the past decade, the blockchain ecosystem has long been in a "regulatory gray area," suppressing its institutional-level 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 robust development has been fully set.

ETH: Institutional-Level Treasury Asset

Ethereum has established its position as the "safest blockchain," making it the default choice for institutions. Based on this, ETH will be repriced in 2026, ranking alongside BTC as an "institutional-level value storage asset."

The blockchain ecosystem will have more than one value storage asset: BTC has established its status as "digital gold," while ETH has become "digital oil"—a value storage asset that is profitable, practical, and driven by underlying ecosystem economic activities.

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 incorporated BTC into its treasury assets, advocating for the value concept of BTC, making it a core category of institutional digital asset holdings.

Now, four "MicroStrategy-like" companies have emerged in the Ethereum ecosystem, driving ETH to achieve similar breakthroughs:

• BitMine Immersion (stock code: BMNR), operated by Tom Lee;
• Sharplink Gaming (stock code: SBET), operated by Joe Lubin and Joseph Chalom;
• The Ether Machine (stock code: ETHM), operated by Andrew Keys;
• Bit Digital (stock code: BTBT), operated by Sam Tabar.

MicroStrategy holds 3.2% of the circulating supply of BTC. The four companies mentioned above that hold ETH have cumulatively purchased about 4.5% of the circulating supply of ETH in the past six months—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 repriced, ranking alongside BTC as an institutional-level value storage asset.

2026 Ethereum Predictions: 5x Growth

Tokenized Assets: 5x Growth 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 the asset tokenization process, with institutions like JPMorgan, BlackRock, and Fidelity already 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: 5x Growth to $1.5 Trillion

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

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: 5x Growth to $15,000

ETH is rapidly developing into an institutional-level value storage asset alongside BTC. ETH is the "call option" for the growth of blockchain technology, and its value growth will benefit from the following trends:

• Expansion of asset tokenization scale
• Widespread application of stablecoins
• Institutional adoption of blockchain
• The financial system's upgrade to the internet era's "ChatGPT moment" (referring to the industry transformation inflection point brought by technological breakthroughs)

Holding ETH is akin to holding a share of the "new financial internet." The logic of its value growth is clear: the increase in user scale, asset scale, number of applications, Layer 2 networks, and transaction frequency will all drive up the value of ETH.

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 an "NVIDIA moment" for ETH (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 on "why to adopt blockchain" will be a thing of the past. Institutions are now fully competing in asset tokenization, stablecoin applications, and customized blockchain deployments, and the structural upgrade of the global financial system has already begun.

When choosing blockchain infrastructure, institutions prioritize factors including: long-term operational record, application precedents, security, liquidity, availability, and risk levels—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, use stablecoins to lower transaction fees, and build dedicated blockchains based on Ethereum.
• Seeking to open new revenue sources? They can create structured products, launch new types of assets, and issue their own stablecoins on the Ethereum platform.
• Aiming for digital business upgrades? They can optimize operational processes with Ethereum, achieve automation in accounting and payments, and reduce manual reconciliation work.

2025 is a turning point for Ethereum's development: infrastructure upgrades are completed, institutional pilot projects are scaled, and the regulatory environment shifts to favorable conditions.

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