- Bitwise has predicted Ethereum could lead the growth of tokenized real-world assets.
- Large holders are accumulating Ethereum, with 104 wallets controlling 57% of its circulating supply.
Ethereum’s position in the tokenization of real-world assets (RWA) is gaining momentum, supported by predictions from Bitwise’s Senior Investment Strategist, Juan Leon. Tokenized assets are now mostly held in the blockchain, which currently commands 81% of the market share in the management of such assets. Many large financial organizations have already started adopting tokenization.
The BUIDL tokenized Treasury fund of BlackRock has more than $578 million, and Ondo Finance has more than $600 million in TVL on its projects. According to Bitwise, Ethereum’s share of tokenized funds may account for more than $100 billion in transaction fees if the $100 trillion RWAs market migrates to distributed ledgers. Further enhancement of the regulation by a crypto-friendly US Securities and Exchange Commission (SEC) may fuel this transition even further and make Ethereum a key player in the future of DeFi.
“With the incoming pro-crypto SEC expected to provide the regulatory clarity needed to accelerate tokenization, investors who stake a claim on Ethereum now may find themselves handsomely rewarded in the period ahead.”
Juan Leon
Ethereum Supply Trends and Whale Accumulation
According to on-chain data, large investors are increasing their accumulation of Ethereum tokens. Santiment reported that 104 wallets that hold at least 100,000 ETH control 57% of the total Ether in circulation. This comprises of DeFi and staking wallets balance indicating that investors have a positive long-term outlook.
There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.
Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH… pic.twitter.com/9qDN3lotQy
— Santiment (@santimentfeed) December 17, 2024
Also, the ETH in circulation on exchange has hit an 8.5-year low of 9.2 million, down 10% from one year ago. This decrease is consistent with the price of Ethereum, which has risen by 73% since October 2023.
Ethereum ETFs have also received steady daily inflows for the past 16 days, with an additional $51.1 million invested on December 16th. This trend indicates increasing institutional interest in Ethereum-linked products, strengthening the asset’s position in the market.
Tokenization and Market Outlook
The tokenization market is growing at a constant rate owing to the demand from big investors like UBS, Franklin Templeton, and BlackRock. The value of on-chain tokenized assets has increased by 2.33% in the last month and is now at $13.54 billion. Even though these numbers are still relatively small compared to the anticipated $30 trillion market by 2030, improvements in legal systems and the usage of stablecoins are opening the path to future growth.
Ethereum’s price performance also shows the growing adoption of the platform. The cryptocurrency has risen to a new year-to-date high of $4,106 as the trading volume rose by 30% on a daily basis. Ether has risen by 22% in the last 30 days and 77.16% in the last year to close in on its all-time high at $4,891.
The derivatives market is also expanding, with total open interest (OI) of Ethereum futures hitting 20.7 billion ETH as of December 17. This marks a 24% growth in the Open Interest within the past week, which is indicative of the increased interest for the more complex Ether linked contracts as well as fresh capital coming into the market.
