The price of Ethereum recently plummeted, intensifying market volatility, briefly falling below $3,000. ETH showed stability after dropping to a session low of around $2,870.
This downward trend has caused anxiety among short-term traders, but BlackRock argues that Ethereum's long-term value comes from its central role in tokenization, transcending price fluctuations.
The future of Ethereum tokenization is bright
In BlackRock's 'Thematic Outlook 2026,' Ethereum is likened to a 'toll road' for tokenization. This comparison emphasizes that Ethereum serves as essential infrastructure rather than a speculative asset. As more financial products transition on-chain, networks that support issuance, settlement, and compliance are expected to gain structurally.
If you want more insights like this token insight, you can subscribe to Editor Harsh Notariya's daily cryptocurrency newsletter here.
The report notes that approximately 65% of all tokenized assets are currently operating on Ethereum. This dominance provides Ethereum with a monopolistic position in the tokenization market. The increased use of stablecoins already demonstrates real-world applications of tokenization. As adoption spreads, Ethereum is expected to attract sustained network demand.
Ethereum dominates the real-world asset (RWA) market
The real-world asset (RWA) market also supports this perception. The total deposit volume of tokenized real-world assets recently exceeded $21 billion, hitting an all-time high. Of this, Ethereum accounts for about $11.6 billion, representing approximately 55% of the entire RWA market.
This concentration suggests that the strength of Ethereum is not weakening but rather strengthening. Issuers and institutions tend to build where liquidity, tools, and security are ensured. This flow further strengthens the network effect. Investors are beginning to recognize that Ethereum can reinforce its leadership in real-world assets (RWA) in global tokenization expansion.
The behavior of long-term holders also aligns with this structural outlook. According to on-chain data, the net position change of Ethereum long-term holders has shifted back to positive. After weeks of selling, the selling pressure from this group has weakened. Accumulation is reappearing, indicating that confidence is strengthening.
Long-term holders tend to respond more to fundamental changes than to short-term price fluctuations. Their shift to buying reflects confidence in Ethereum's role within the financial infrastructure. The easing of selling pressure from this group may help ETH recover above the psychological support line and positively contribute to price stability.
Ethereum recently rebounded from a low near $2,870 and is trading around $2,997 at the time of writing. The current price is just below the $3,000 threshold, which market participants are paying attention to. If this range is maintained, it indicates a weakening of downward momentum and a return of buying pressure.
BlackRock's acknowledgment of Ethereum's role in tokenization could serve as a positive catalyst for market sentiment. Restoring confidence could help ETH rebound to the $3,085 resistance. If the upward trend continues, additional recovery up to $3,188 could occur, potentially recouping a significant portion of recent losses.
Under the current conditions, downside risks are limited. For a bearish scenario to unfold, ETH would need to fall below $2,925 or $2,885. If this support line breaks, Ethereum could be exposed to further declines down to $2,796. However, improvements in macro signals and the trend of long-term holders accumulating are lowering this downside possibility.
