Company SharpLink Co-CEO Predicts Ethereum TVL Growth by 2026 Driven by Stablecoins, Tokenized RWAs and Sovereign Wealth Funds

Company SharpLink's Co-CEO has outlined a bullish multi-year outlook for Ethereum, forecasting a meaningful rise in total value locked (TVL) across Ethereum-based protocols by 2026. According to the executive, the primary catalysts will be the widespread adoption of stablecoins, the expansion of tokenized real-world assets (RWAs), and capital flows from sovereign wealth funds. This projection reflects a convergence of macro liquidity, on-chain composability, and institutional interest that could reshape decentralized finance (DeFi) on Ethereum.

Why this matters: TVL is a core metric for DeFi health, representing the aggregate assets committed to smart contracts and lending/borrowing pools. A sustained increase in TVL implies greater utility, deeper liquidity, and improved market resilience. The Co-CEO emphasized that while short-term price volatility will persist, structural inflows from stable capital and asset tokenization will improve capital efficiency and encourage long-term participation.

Stablecoins as liquidity rails: Stablecoins act as the primary on-chain medium of exchange and liquidity reservoir in DeFi. The Co-CEO argued that the maturation and regulatory clarity around stablecoins will accelerate their use as settlement and collateral layers, enabling larger capital pools to be routed into Ethereum protocols. Stablecoins reduce settlement friction and currency risk for institutional players, making Ethereum-native lending and treasury operations more attractive.

Tokenized RWAs — unlocking new capital: The tokenization of real-world assets (RWAs) — including bonds, real estate, and structured credit — could create a new class of yield-bearing instruments on Ethereum. Tokenized RWAs provide institutional investors with programmable exposure to traditional assets while leveraging on-chain transparency and settlement. The Co-CEO highlighted that tokenized assets could bridge off-chain capital with on-chain liquidity, significantly increasing TVL as institutions deploy capital into tokenized pools.

Sovereign wealth funds and institutional adoption: Perhaps the most notable part of the thesis is the potential involvement of sovereign wealth funds and other large long-term pools of capital. These institutions can allocate substantial, patient capital to blockchain-based strategies if custody, compliance, and governance frameworks align. The Co-CEO suggested that pilot allocations from sovereign funds into tokenized yield products or stablecoin-denominated strategies would be a watershed moment for Ethereum TVL growth.

Risks and caveats: Despite the optimistic forecast, the Co-CEO cautioned on regulatory uncertainty, custody challenges, and counterparty risk in tokenized instruments. He noted that meaningful infrastructure upgrades — including secure custody solutions and regulatory-compliant token standards — are prerequisites for large-scale institutional participation. Moreover, the interplay between Layer 2 scaling, fees, and on-chain composability will determine how effectively these capital flows translate into sustained TVL growth.

Market implications: If realized, this scenario would deepen DeFi liquidity, compress spreads, and potentially reduce volatility for on-chain markets. Protocols that facilitate tokenized RWAs, yield aggregation, and compliant stablecoin operations could see outsized TVL inflows. Traders and analysts should watch institutional announcements, regulatory developments, and major tokenization pilots as leading indicators of this transition.

Conclusion: The perspective offered by Company SharpLink's Co-CEO frames 2026 as a potential inflection point for Ethereum TVL driven by converging trends: robust stablecoin rails, scalable tokenized RWAs, and selective institutional adoption. While execution risks remain, the structural case for increased on-chain capital is compelling and warrants close attention from market participants and protocol builders.