Experts explain why 2026 could be the year Ethereum surprises the market.

Ethereum (ETH) ended 2025 with results that fell short of market expectations, leaving sentiment for the asset rather subdued. However, Kevin Rusher, founder of RAAC, argues that focusing solely on price overlooks much of the bigger picture regarding Ethereum.

According to Rusher, 2026 could be the year Ethereum surprises the market, thanks to the strong rise of institutional investors, the development of stablecoins, Tokenize assets, and the payments sector.

Everyone is watching the price of ETH, but the real development of Ethereum is elsewhere.

Ethereum declined by nearly 10% in 2025, primarily due to a sharp price drop in the final quarter. However, January 2026 started positively, with a slight increase in the asset's value.

Data from BeInCrypto Markets shows that Ethereum has surpassed the $3,000 mark. In the last 24 hours, the price of ETH has increased by 1.76%. At the time of writing, ETH is trading at $3,030.

While price fluctuations often draw attention within the community, according to Rusher, many commentators overlook the crucial trend that Ethereum is increasingly attracting the attention of large institutional investors.

“While some short-term analysts are focused solely on the price of ETH, they are missing the bigger picture: the increasing involvement of financial institutions is making Ethereum the new king of crypto,” Rusher noted.

The executive explained that Ethereum currently holds a significant advantage in the fastest-growing areas of the crypto market. By Christmas, the issuance of stablecoins on the Ethereum network had surpassed $59 billion, solidifying Ethereum's leading position with over 62% of the total market share, far exceeding all other blockchains.

Tokenize assets strengthen Ethereum's position.

The Tokenize asset sector is also contributing to the positive outlook on Ethereum. BeInCrypto states that real assets (RWAs) are still expected to grow well in 2025, despite the challenging overall market conditions.

Industry experts and the crypto Twitter community remain optimistic about 2026, expecting the growth momentum to continue spreading across the sector.

According to data from RWA.xyz , Ethereum currently holds $12.5 billion in Tokenize assets, accounting for over 65% of the market. Rusher added that its closest competitor, BNB Chain, only holds around $2 billion, while Solana and Arbitrum each chain less than $1 billion. Therefore, if this sector continues to grow this year, Ethereum will benefit even more.

“During the recent holiday season alone, Tokenize gold assets on Ethereum surpassed $4 billion, a sharp increase from just $1 billion at the beginning of the year. This Tokenize gold craze is primarily happening on Ethereum, and with central banks and investors rushing in, this growth is only trending upwards,” he commented.

The Capital flow indicates a preference for institutional investors.

Rusher also Chia with BeInCrypto that while sentiment regarding ETH price remains cautious, Capital flows suggest the opposite. In 2025, Bitcoin inflows are expected to be only half of what they were in 2024, while Ethereum inflows are projected to double.

He cited research from State Street indicating that 6% of asset managers are allocating 5% or more of their investment portfolio to Ethereum, compared to 5% who are investing the same percentage in Bitcoin.

Finally, Rusher cites a report from Artemis stating that B2B payment transactions using stablecoins on Ethereum have been steadily increasing from August 2024 to August 2025.

“In short, those who still expect Bitcoin to be a strong growth asset in 2026 may be surprised by the explosive growth of Ethereum, driven by stablecoins, Tokenize , and the payments sector — all of which are being aggressively absorbed by large institutions as if there were no tomorrow,” he Chia .

Rusher isn't the only one optimistic about Ethereum. BitMine President Tom Lee also offered a positive forecast for ETH. In a recent interview, Lee predicted that the price of ETH could reach between $7,000 and $9,000 by early 2026, representing a potential growth of 130% to 200% from its current value.

In summary, while Ethereum's price performance in 2025 may not be particularly impressive, the fundamentals suggest that ETH 's Vai in the digital asset economy continues to expand. Whether this growth will be sustained and reflected in the price will become clearer as 2026 progresses.