Ethereum’s underperformance in 2025 left market expectations unmet, maintaining a cautious sentiment around the asset. Kevin Rusher, founder of RAAC, suggests the focus on price obscures significant developments. Rusher argues that 2026 could see Ethereum surprising the market due to increased institutional adoption and growth in stablecoins, tokenized assets, and payment systems.
In 2025, Ethereum’s value fell by nearly 10%, with significant losses in the final quarter. However, the beginning of 2026 has seen a positive shift, with Ethereum crossing the $3,000 threshold, rising 1.76% in the last 24 hours and reaching $3,030. This price movement is notable, yet Rusher emphasizes a broader trend: Ethereum’s expanding institutional adoption, which he believes is establishing it as a dominant force in the crypto space.
Rusher highlighted Ethereum’s capture of a significant share in rapidly expanding sectors of the crypto economy. During the last holiday season, stablecoin issuance on Ethereum exceeded $59 billion, giving it more than 62% of the market, far ahead of other blockchains.
The tokenized asset sector further supports Ethereum’s strong position. Despite a general market downturn in 2025, real-world assets (RWAs) saw considerable growth. Industry experts and the crypto community remain optimistic about continued momentum in 2026. According to RWA.xyz, Ethereum hosts $12.5 billion in tokenized assets, accounting for over 65% of the market. By comparison, its nearest competitor, BNB Chain, holds just $2 billion, with Solana and Arbitrum each under $1 billion. Rusher noted that tokenized gold on Ethereum rose to over $4 billion, up from $1 billion at the start of the year.
Capital flows also indicate institutional preference for Ethereum. In 2025, Ethereum saw its inflows double, while Bitcoin’s halved compared to the previous year. Research from State Street revealed that 6% of asset managers have 5% or more of their assets under management in Ethereum, compared to 5% for Bitcoin. Furthermore, a report by Artemis found that B2B stablecoin payments on Ethereum grew steadily from August 2024 to August 2025.
Rusher is joined by other optimistic voices. Tom Lee, chairman of BitMine, predicts Ethereum could reach between $7,000 and $9,000 by early 2026, suggesting a potential increase of 130% to 200% from current prices.
While Ethereum’s price lagged in 2025, underlying data indicate its growing role in the digital asset economy. Whether this expansion will lead to sustained price increases remains to be seen as 2026 unfolds.
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