Ethereum (ETH) ended 2025 underperforming relative to market expectations, preserving sentiment muted across the asset. Nonetheless, Kevin Rusher, founding father of RAAC, argues that specializing in value alone misses the larger image.
In accordance with Rusher, 2026 might be the yr Ethereum blindsides the market, pushed by accelerating institutional adoption and progress throughout stablecoins, tokenized belongings, and funds.
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Everybody Is Watching ETH’s Value, however Ethereum’s Actual Progress Is Elsewhere
Ethereum declined by almost 10% in 2025, following substantial losses within the final quarter. Notably, January 2026 has began on a constructive observe, with the asset recording modest features.
BeInCrypto Markets knowledge reveals that Ethereum has crossed the $3,000 mark. Over the previous 24 hours, it has gained 1.76%. On the time of writing, ETH was buying and selling at $3,030.
Whereas value fluctuations make headlines and generate consideration inside the group, Rusher argues that some commentators overlook a extra important pattern: the rising institutional adoption of Ethereum.
“Whereas some myopic pundits are hyper-focused on the worth of ETH, they’re lacking the large institutional adoption cementing Ethereum as the brand new king of crypto,” Rusher stated.
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The manager defined that Ethereum has captured a number one share within the fastest-growing areas of the crypto economic system. Over Christmas, stablecoin issuance on the community surpassed $59 billion, reinforcing Ethereum’s dominance because it accounted for greater than 62% of the full market, considerably forward of any competing blockchain.
Tokenized Belongings Strengthen Ethereum’s Place
The tokenized asset sector additional strengthens the bullish case. BeInCrypto reported that real-world belongings (RWAs) recorded important progress in 2025 regardless of the broader market downturn.
Furthermore, trade consultants and Crypto Twitter stay optimistic about 2026, anticipating sustained momentum and additional growth throughout the sector.
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In accordance with knowledge from RWA.xyz, Ethereum at the moment hosts $12.5 billion in tokenized belongings, accounting for over 65% of the market. Rusher added that its nearest competitor, BNB Chain, holds simply $2 billion, whereas Solana and Arbitrum every account for underneath $1 billion. Thus, if the sector grows this yr, Ethereum may additional profit.
“Certainly, over the festive interval, we noticed tokenized gold alone surpass $4 billion on Ethereum, up from simply $1 billion at first of the yr. The large gold rush we’re seeing in tokenized gold is going on virtually completely on Ethereum, and with Central Banks and buyers scrambling to get in any approach they will, this progress goes in just one route,” he remarked.
Capital Flows Sign Institutional Choice
Rusher additionally informed BeInCrypto that whereas sentiment round ETH’s value stays subdued, capital flows paint a distinct image. In 2025, inflows into Bitcoin have been half their 2024 figures. In the meantime, inflows into Ethereum doubled.
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The manager cited State Road analysis, which revealed that 6% of asset managers have 5% or extra of their AUM in Ethereum, in comparison with 5% with the identical degree of publicity to Bitcoin.
Lastly, Rusher pointed to a report from Artemis, which highlighted that B2B stablecoin funds on Ethereum grew steadily from August 2024 till August 2025.
“Briefly, anyone nonetheless betting on Bitcoin as a progress asset for 2026 will seemingly be blindsided by the huge progress we’re going to see on Ethereum, fuelled by stablecoins, tokenization and funds, all of which establishments are absorbing as if there have been no tomorrow,” he talked about.
Rusher is just not alone in his optimism. BitMine chairman Tom Lee has additionally expressed a bullish outlook on Ethereum. In a latest interview, Lee forecasted that ETH may attain between $7,000 and $9,000 by early 2026, implying a possible upside of 130% to 200% from present ranges.
General, Ethereum’s value efficiency might have lagged in 2025, however underlying knowledge counsel its function inside the digital asset economic system continues to develop. Whether or not this progress interprets into sustained value features will change into clearer as 2026 progresses.