CMC News

Ethereum $200B Tokenization Boom Fuels Calls for Higher ETH Price

#Ethereum’s tokenized asset market has reached $201B, nearly two-thirds of the global $314B total, underscoring its dominance among #blockchain networks. Analysts say this growth, paired with declining $ETH exchange supply, supports the case that the asset remains undervalued.

Institutional adoption is driving the surge. Tokenized fund assets under management on Ethereum have climbed nearly 2,000% since January 2024, spurred by major firms such as BlackRock and Fidelity. These entrants are bringing traditional financial products directly on-chain.

#Stablecoins continue to play a central role in Ethereum’s network economy. $USDT and $USDC issuance sustain deep liquidity pools that power DeFi, cross-border payments, and exchange trading, maintaining high transaction throughput across the network.

Fidelity Digital Assets noted that stablecoins have processed about $18T in the past year, surpassing Visa’s annual volume of $15.4T. The firm said the growth of stablecoins and tokenized real-world assets are among the most significant developments beyond $BTC and $ETH.

Real-world assets on Ethereum have expanded quickly, with tokenized treasuries, funds, and credit instruments totaling $12B, around 34% of the $35.6B global RWA market. Protocols such as Ondo, Centrifuge, and Maple are fueling this growth through tokenized yield products.

Analytics platform Token Terminal reported that the expansion of tokenized assets is now anchoring Ethereum’s $430B market capitalization to tangible on-chain activity. It said the market cap of #tokenized assets has effectively set a “floor” for $ETH’s value.

#CryptoQuant data showed $ETH supply on exchanges has declined continuously through November after peaking in early summer. The outflow pattern coincided with Ethereum's price reaching $4,500 to $5,000 in August and September before pulling back to approximately $3,500 currently.