Ethereum's Dominance in Real-World Asset Tokenization Surpasses 50%, Driving Optimism for Future Growth

Financial analyst Thomas (Tom) Lee of FSInsight.com has expressed a positive outlook for Ethereum (ETH), citing the burgeoning stablecoin market and Wall Street's increasing engagement in tokenizing real-world assets (RWAs) as key drivers for potential upside. His assessment comes as the cryptocurrency navigates a period of mixed performance.

According to a recent social media post by Lee, "$ETH +22% past month but down -9% YTD," indicating a recent surge despite a year-to-date decline. He noted that Ethereum has been "rangebound since 2021," yet sees significant catalysts for future growth.

A primary factor is the expansion of stablecoins, particularly those like Tether (USDT) and Circle's USDC (referenced as CRCL), which are integral to the broader crypto ecosystem. The stablecoin market surpassed $200 billion in 2024, with over 140 million holders by January 2025, according to Investax.io and BCG. Ethereum remains the leading network for stablecoin transactions, having processed over $850 billion in stablecoin volume in early 2025, with its stablecoin supply increasing by 70% over the past year, as reported by XBTO.

The tokenization of real-world assets is another critical demand driver. This process involves converting tangible assets, such as U.S. Treasuries, real estate, and commodities, into digital tokens on a blockchain. Ethereum has emerged as the preferred platform for this innovation, commanding over 50% of the total RWA market share, with some reports, including Bitwise predictions cited by Mitrade, indicating an 81% market share in tokenized assets. BlackRock's BUIDL fund, a tokenized U.S. Treasury fund launched on Ethereum, rapidly scaled to over $2.5 billion in assets under management by May 2025, underscoring institutional confidence.

The RWA tokenization market, excluding stablecoins, grew approximately 85% year-over-year to reach $15.2 billion by December 2024. Analysts at Bitwise project that Ethereum could capture over $100 billion in fees from RWA tokenization alone in 2025, further solidifying its economic model. This growing convergence of traditional finance and blockchain technology positions Ethereum for substantial future demand, as outlined by Lee: "the rise of stablecoins $CRCL $USDT and Wall Street tokenizing real-world assets is driving up demand for ETH = upside."