Key Takeaways:
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Ethereum currently hosts $201 billion in tokenized assets, accounting for nearly two-thirds of the worldwide total of $314 billion.
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Institutional growth led by BlackRock and Fidelity has resulted in a 2,000% increase in on-chain fund AUM since 2024.
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ETH exchange supply hit a one-year low, indicating investor accumulation and a stronger market floor.
Ethereum's growing dominance on this planet of tokenized assets is changing the way in which investors evaluate its network fundamentals and its native token, Ether (ETH). As of Tuesday, tokenized assets across all blockchains stood at about $314 billion, with Ethereum accounting for $201 billion, nearly two-thirds of the market. This highlights its leading role as essentially the most used settlement layer within the crypto space in 2025.
Market capitalization of tokenized assets by chain. Source: Token Terminal
Stablecoins proceed to form the backbone of Ethereum's network economy and account for nearly all of transaction activity. The combined issuance of USDt (USDT) and USDC (USDC) on Ethereum has resulted in extensive liquidity pools in DeFi, cross-border payments and exchanges, helping the network maintain considered one of the very best transaction throughputs within the industry.
The expansion goes beyond stablecoins. Token fund assets under management (AUM) on Ethereum have increased nearly 2,000% since January 2024, driven by institutional market participants corresponding to BlackRock and Fidelity introducing traditional investment products on-chain.
Fidelity Digital Assets noted that “besides Bitcoin and Ethereum, a few of the most notable developments in digital assets are occurring in stablecoins and tokenized real-world assets (RWAs).”
The company highlighted that stablecoins have change into a world medium of exchange, processing $18 trillion in volume within the last 12 months, even exceeding Visa's annual throughput of $15.4 trillion.
RWAs have now change into Ethereum’s fastest growing category. Tokenized government bonds, funds and credit instruments on Ethereum now total $12 billion, representing 34% of the $35.6 billion global RWA market. Protocols like Ondo, Centrifuge, and Maple are driving the surge by offering yields of 4-6% on tokenized U.S. treasuries and collateralized lending products.
Analytics platform Token Terminal noted that this expansion effectively ties Ethereum's $430 billion market cap to a concrete on-chain utility value, noting that “the market cap of tokenized assets on Ethereum has set the ground for ETH's market cap.”
The supply on the ETH exchange indicates bullish sentiment
Data from CryptoQuant indicates that Binance, the biggest Ether trading venue by volume, suggests that ETH exchange supply has declined sharply since mid-2025, reaching its lowest level since May 2024. After a peak in early summer, supply fell constantly until November and reached around 0.0327.
This sustained outflow signals that coins are moving into cold storage or long-term wallets, a behavior typically related to periods of accumulation. Interestingly, this decline in foreign exchange balances coincided with a peak in Ether price of around $4,500 to $5,000 in August and September before falling back to around $3,500 currently.
Analysts noted that lower supply on exchanges tends to ease selling pressure, potentially setting the stage for price stabilization or a renewed uptrend if investor risk appetite improves.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.
