While Bitcoin (BTC) and the broader crypto market have continued their downtrend since October, a different picture is emerging on the Ethereum (ETH) side. Although price action has remained relatively limited, institutional interest in Ethereum appears to be increasing quietly but steadily. Developments in tokenization and stablecoins, in particular, continue to strengthen ETH’s long-term role.
Institutional Adoption Is Accelerating for Ethereum
Joseph Chalom, former Head of Digital Asset Strategy at BlackRock and current CEO of SharpLink, stated that despite macroeconomic uncertainty, Ethereum is gaining strong momentum in institutional adoption and tokenization. Chalom emphasized that short-term price stagnation is overshadowing Ethereum’s true potential and noted that institutional investors are evaluating the network independently of price movements. According to Chalom, many major institutions are investing with a long-term strategy that envisions Ethereum as the global infrastructure for asset tokenization, largely ignoring current market conditions.
The SharpLink CEO argues that economic concerns and market volatility have pushed Ethereum’s fundamental developments into the background. Chalom summarized the situation as follows:
“Institutional giants are overlooking the current price stagnation and heavily investing in Ethereum as the global infrastructure for asset tokenization.”
This approach shows that Ethereum is being positioned not merely as a speculative asset, but as a foundational layer of financial infrastructure.
Why Is Ethereum Being Preferred?
According to Chalom, institutional investors have clear priorities: security, liquidity, and reliability. As a result, a large share of high-value financial activity—such as stablecoins and tokenized assets—is concentrated on Ethereum.
At this point, Chalom also draws a striking comparison with other networks:
“Solana was fast and cheap, but it wasn’t secure.”
This statement highlights that institutions prioritize long-term security and systemic resilience over low costs. Chalom adds that focusing too heavily on short-term macro volatility and uncertainty causes many investors to overlook the long-term capital allocation taking place on Ethereum. While institutional investors continue to invest in Ethereum’s infrastructure, a large portion of retail investors remains driven by FUD (fear, uncertainty, and doubt). As seen in previous market cycles, this divergence is considered a critical signal for long-term price dynamics.
Larry Fink: Ethereum Is the Center of Tokenization
Institutional confidence in Ethereum is not limited to Joseph Chalom. BlackRock CEO Larry Fink has also openly stated that Ethereum will serve as a “gateway” for tokenized assets. In a recent statement, Fink emphasized that more than 65% of stablecoins and tokenized assets are currently built on Ethereum, making the network the first choice for institutional players. Although Ethereum’s price remains under pressure in the short term, developments on the institutional side continue to strengthen the long-term outlook. Ethereum’s central role in tokenization, stablecoins, and financial infrastructure clearly explains why institutional investors keep accumulating this altcoin.
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