Finance

Ethereum’s Tokenized Asset Dominance: How Institutions and Scarce ETH Fuel Price Predictions

Ethereum, hosting $201B in tokenized assets, fueled by institutional interest, predicts a higher ETH price due to declining supply.

byAndres Castro

November 11, 2025, 2:18 PM

A cluster of physical Ethereum cryptocurrency coins on a blurred blue circuit board background.

A pile of physical Ethereum tokens rests on a futuristic, blurred, illuminated circuit board. By MDL.

Executive Summary

Ethereum dominates the tokenized asset market, hosting $201 billion of the global $314 billion total, solidifying its role as a primary settlement layer.

Institutional interest and investment in Ethereum are surging, with tokenized fund assets under management increasing by nearly 2,000% since January 2024, driven by firms like BlackRock and Fidelity.

Ether’s supply on exchanges, particularly Binance, has sharply declined to its lowest level since May 2024, suggesting investor accumulation and reduced sell pressure for the cryptocurrency.

The Story So Far

Ethereum’s predicted price increase is underpinned by its dominant position in the tokenized asset market, hosting nearly two-thirds of the global total and serving as a primary settlement layer for stablecoins and Real-World Assets. This strong fundamental utility is further bolstered by a surge in institutional interest from major financial players bringing investment products onto the blockchain, alongside a significant decline in Ether’s exchange supply, which suggests investor accumulation and reduced sell pressure.

Why This Matters

Ethereum’s substantial dominance in tokenized assets, particularly with a nearly 2,000% surge in institutional adoption of Real-World Assets (RWAs) and stablecoins processing volume exceeding Visa’s, solidifies its role as a foundational layer for the future of finance. This growing utility, coupled with a sharp decline in Ether’s exchange supply indicating investor accumulation, suggests a strong market floor, reduced sell pressure, and a significant potential for future price appreciation for ETH.

Who Thinks What?

Analysts predict a higher ETH price, citing Ethereum’s dominance in tokenized assets, a surge in institutional interest, and a notable decline in Ether’s exchange supply.

Traditional finance institutions like BlackRock and Fidelity are actively bringing investment products onto the blockchain, driving significant growth in tokenized fund assets and Real-World Assets on Ethereum.

Investors are moving Ether into cold storage or long-term wallets, suggesting an accumulation phase and reduced sell pressure, which analysts believe could lead to price stabilization or renewed upside.

Ethereum’s network has solidified its position as a leading force in the tokenized asset landscape, hosting $201 billion of the global $314 billion total. This significant dominance, coupled with a surge in institutional interest and a notable decline in Ether’s exchange supply, is fueling analysts’ predictions for a higher ETH price.

Ethereum Dominates Tokenized Assets

The blockchain’s $201 billion in tokenized assets represents nearly two-thirds of the total market, underscoring its role as a primary settlement layer for crypto. Stablecoins, including USDT and USDC, remain foundational to Ethereum’s economy, facilitating deep liquidity across decentralized finance (DeFi), cross-border payments, and exchanges. These stablecoins contribute to the network’s high transaction throughput.

Institutional Growth and Real-World Assets

Beyond stablecoins, tokenized fund assets under management (AUM) on Ethereum have seen a nearly 2,000% increase since January 2024. This growth is largely driven by traditional finance institutions like BlackRock and Fidelity, which are actively bringing investment products onto the blockchain. Fidelity Digital Assets highlighted that stablecoins processed $18 trillion in volume over the past year, surpassing Visa’s annual throughput of $15.4 trillion.

Real-World Assets (RWAs) have emerged as Ethereum’s fastest-growing category, with tokenized treasuries, funds, and credit instruments now totaling $12 billion. This figure represents 34% of the $35.6 billion global RWA market. Protocols such as Ondo, Centrifuge, and Maple are contributing to this surge by offering attractive yields on tokenized U.S. Treasury exposure and secured lending products. Analytics platform Token Terminal posits that this expansion effectively anchors Ethereum’s $430 billion market capitalization to tangible onchain utility.

Declining ETH Exchange Supply

Data from CryptoQuant indicates a sharp decline in Ether’s exchange supply on Binance, the largest Ether trading venue by volume. Supply has fallen continuously since mid-2025, hitting its lowest level since May 2024. This persistent outflow suggests investors are moving coins into cold storage or long-term wallets, a behavior typically associated with accumulation phases and reduced sell pressure.

Interestingly, this decrease in exchange balances coincided with Ether’s price peaking near $4,500 to $5,000 in August and September before retracing to approximately $3,500. Analysts suggest that a reduced supply on exchanges could lead to price stabilization or renewed upside if investor risk appetite improves.

Key Takeaways

Ethereum’s substantial base of tokenized assets, coupled with increasing institutional adoption and a decreasing supply of ETH on exchanges, positions the network for continued growth. These factors collectively strengthen the argument for a robust market floor and potential future price appreciation for its native token.