A rare milestone recently took place on Ethereum, with numbers that have raised eyebrows among analysts. For the first time in the network’s history, its total value locked (TVL) crossed $260 billion - surpassing the market capitalization of ether itself at $210 billion. In other words, the assets deposited across Ethereum are now worth more than the total market value of all circulating ETH coins.
Leon Waidmann, head of research at Lisk, described this distortion as a signal that “ETH is too cheap,” noting that its relative valuation is even lower than during the 2022 bear market. ETH price itself gained 3% in a single day, outperforming the broader crypto market, driven by a surge in real-world asset tokenization, the success of Robinhood Chain, and corporate treasury purchases.
Ethereum Solidifies Its Role as the Home of Real-World Assets
This growth is backed by solid fundamentals. Ethereum now commands 47% of the tokenized real-world asset (RWA) market, according to data from rwa.xyz - ranging from Tether Gold tokenized gold and Ondo’s dollar yield products to government bonds from Franklin Templeton. Robinhood Chain, a new network using ETH for gas fees, has already attracted $106 million in bridge deposits and offers tokenized stocks across 120 countries. All of this reinforces Ethereum’s position as the primary settlement layer for the financial world migrating to blockchain.
Yet On-Chain Data Hasn’t Fully Joined the Cheer
Behind the bullish narrative, however, lies a more cautious undertone. On-chain metrics point to stagnation: the 2026 bear market has dampened demand, and competing blockchains are capturing market share in specific sectors. ETH perpetual futures funding rates dropped to 3% on Saturday - below the neutral 6% threshold and far from Friday’s 12% peak - signaling that bulls are losing conviction. ETH also failed to break above $1,800 and remains vulnerable to retesting $1,700. The rally was likely supported by institutional inflows, with Arkham flagging a withdrawal of 20,500 ETH worth $36 million from Galaxy Digital to a fresh wallet. Thus, two conflicting dynamics coexist: strengthening long-term fundamentals and hesitant short-term sentiment. Which one prevails first remains an open question.
Via Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
