Essential Insights:
The market cap for stablecoins has increased to $280 billion since 2023, with projections reaching $2 trillion by 2028; more than half operates on Ethereum.
Onchain real-world assets have surged 413% since early 2023, now totaling $26.7 billion, driven by leaders like BlackRock and Franklin Templeton on Ethereum.
Proposed legislation such as the GENIUS Act and CLARITY Act could facilitate widespread institutional adoption and enhance Ethereum’s significance.
Ether (ETH) has experienced an impressive 88% increase within two months, outperforming most major cryptocurrencies. This surge is often linked to the anticipated altcoin season, the arrival of ETH ETFs, or the influx of corporate treasuries acquiring Ether. However, these factors seem to be secondary to the underlying force: a steady rise in institutional adoption within the crypto space.
By establishing dominance in highly sought-after sectors—stablecoins and tokenized real-world assets (RWAs)—Ethereum is solidifying its status as the preferred smart contract platform. Recent US regulations, particularly the GENIUS Act and CLARITY Act, could further advance this trend, accelerating Ethereum’s integration into traditional finance.
Stablecoins are the lifeblood of finance
Since the beginning of the 2023-2026 cycle, the stablecoin market cap has reached $280 billion, as reported by DefiLlama. Analysts at McKinsey forecast this figure will exceed $400 billion by the end of the year, reaching $2 trillion by 2028. Once merely a component of cryptocurrency trading, stablecoins are now emerging as serious competitors to conventional money-transfer systems—offering speed, affordability, inclusivity, and a global reach.
Ethereum leads the pack. Data from Dune Analytics reveals that 56.1% of all stablecoins are based on Ethereum. With the increasing adoption of stablecoins for cross-border transactions, Ethereum benefits from higher transaction fees.
Regulatory support is now giving this expansion a solid foundation. The GENIUS Act, enacted in July 2025, introduces the first federal framework for stablecoins, requiring one-to-one backing with USD or short-term Treasurys, transparent reserve disclosures, and exclusion from securities regulation. This ensures a safer and more reliable landscape for issuing and using stablecoins, linking their growth to US Treasurys and the dollar.
RWAs mark the next phase of financial asset tokenization
Tokenized real-world assets have emerged as a key trend in this cycle. The sector is booming as banks and asset managers recognize the swiftness of transferring tokenized assets compared to traditional financial systems. Analytics platform RWA.xyz reports a 413% growth since early 2023, now valued at $26.7 billion, up from $5.2 billion.
Significant players are fueling this transformation. BlackRock’s BUIDL, WisdomTree’s WTGXX, and Franklin Templeton’s BENJI now operate alongside crypto-native asset issuers like Tether’s XAUT, Paxos’ PAXG, and Ondo’s OUSG and USDY. This merging of worlds illustrates how quickly the distinctions between crypto and traditional finance are fading.
Ethereum is at the forefront, hosting over $7.6 billion in tokenized real-world assets and capturing 52% of the total RWA market.
Related: Ether ETFs see 10x higher inflows than Bitcoin in a week
Ethereum is the leading “mature blockchain”
Ethereum’s edge is not just in market share but also in its established credibility. Recognized as the oldest smart contract platform with consistent uptime and substantial decentralization, it has garnered institutional trust. Cointelegraph has noted that TradFi increasingly regards Ethereum as the most rigorously tested and credibly neutral network, making it more appealing than the once-promising “private” blockchains.
In a pivotal development, recent US regulatory changes have formalized this distinction. The CLARITY Act, approved by the House on July 17 and now awaiting Senate consideration, introduces the term “mature blockchain” and delineates between assets regulated as commodities by the CFTC and those governed by the SEC’s securities laws. This could revolutionize crypto finance, especially for RWAs, permitting any blockchain meeting the maturity criteria to host tokenized versions of almost any asset.
To qualify, no single entity should control the network or hold more than 20% of its tokens; the code must be open-source, governance transparent, and engagement broad. Ethereum surpasses these requirements, making it the obvious candidate for institutions eager to move vast real-world assets onchain.
As regulations create a connection between DeFi and TradFi, Ethereum is not merely well-positioned; it’s evolving into the foundational infrastructure. Consider ETH not just as a speculative asset but as essential financial infrastructure. This shift in perception not only alters ecosystems but also influences price trends.
This article does not constitute investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research.
