Ethereum”s performance in 2025 fell short of market expectations, fostering a sense of caution among investors. Kevin Rusher, the founder of RAAC, points out that the emphasis on price fluctuations often overshadows key advancements within the network. He believes that 2026 may surprise the market, driven by a surge in institutional adoption alongside growth in stablecoins, tokenized assets, and payment systems.
In 2025, Ethereum”s value declined by nearly 10%, with notable losses during the last quarter. However, the onset of 2026 has brought a positive turnaround, with Ethereum surpassing the $3,000 mark, rising by 1.76% in the past 24 hours to reach $3,030. While this price action is noteworthy, Rusher underscores a more significant trend: Ethereum”s increasing traction among institutional players, which is establishing its position as a leading entity in the cryptocurrency market.
Rusher highlighted that Ethereum captured a substantial portion of the rapidly evolving sectors within the crypto economy. During the last holiday season, stablecoin issuance on the Ethereum network soared past $59 billion, securing over 62% of the overall market share, significantly outpacing other blockchain platforms. The burgeoning tokenized asset sector further reinforces Ethereum”s robust standing. Despite a general downturn in the market throughout 2025, the real-world assets (RWAs) segment experienced remarkable growth. Industry analysts and crypto enthusiasts maintain an optimistic outlook for continued progress into 2026.
According to RWA.xyz, Ethereum currently hosts $12.5 billion in tokenized assets, representing more than 65% of the market. In contrast, BNB Chain, its closest competitor, holds just $2 billion, while Solana and Arbitrum each account for less than $1 billion. Rusher noted the impressive rise of tokenized gold on Ethereum, which increased to over $4 billion, up from $1 billion at the year”s beginning.
Capital flow trends further illustrate institutional interest in Ethereum. In 2025, inflows into Ethereum doubled, whereas Bitcoin”s inflows halved compared to the previous year. Research from State Street indicates that 6% of asset managers allocate 5% or more of their assets under management to Ethereum, compared to 5% for Bitcoin. Additionally, a report by Artemis detailed a steady increase in B2B stablecoin payments on the Ethereum network from August 2024 to August 2025.
Rusher”s optimistic outlook is echoed by others in the industry. Tom Lee, chairman of BitMine, suggests that Ethereum could reach a price range between $7,000 and $9,000 by early 2026, indicating a potential increase of 130% to 200% from current levels. Although Ethereum”s price lagged in 2025, the underlying data points to its expanding role within the digital asset economy. Whether this growth translates into sustained price increases will unfold as 2026 progresses.
