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- Ethereum’s recovery may depend on regulation, market sentiment, and tokenization growth.
- Institutional interest in tokenized assets on Ethereum continues to expand rapidly.
- The CLARITY Act could reshape global crypto regulation and boost investor confidence.
Ethereum could be setting up for its next major move, but according to SharpLink Gaming CEO Joseph Chalom, three major developments need to align before the asset regains strong upward momentum.
Speaking during an interview on Cointelegraph’s Chain Reaction show, Chalom outlined regulatory clarity in the US, improving market sentiment, and the growth of tokenized real-world assets as the main drivers that could push Ether higher in the coming months.
US Crypto Regulation Could Trigger Global Momentum
The first catalyst revolves around the proposed Digital Asset Market Clarity Act, commonly known as the CLARITY Act. The legislation is designed to create clearer rules for the US crypto sector and has recently gained political traction after advancing through a Senate Banking Committee meeting.
Chalom believes the bill’s impact would extend far beyond the United States. According to him, financial hubs across Asia are closely monitoring Washington’s changing approach toward crypto regulation.
Countries such as South Korea, Singapore, Hong Kong, and Japan reportedly see the US shifting from a restrictive stance on digital assets toward becoming a more competitive financial leader again. That shift could influence global capital flows and encourage wider institutional participation in crypto markets.
Market Sentiment Still Weighing on Ethereum
Despite Ethereum’s long-term potential, broader market conditions remain a challenge.
Ether reached a record high near $4,823 in August 2025 during the crypto market rally, but the asset has since dropped significantly and was trading near $2,190 at the time of Chalom’s comments.
He argued that risk appetite needs to improve before crypto markets can fully recover. Geopolitical uncertainty and heavy investor focus on artificial intelligence stocks have drawn attention away from digital assets in recent months.
A calmer macroeconomic environment could help redirect capital back into cryptocurrencies, particularly Ethereum, which remains the dominant blockchain for decentralized finance and institutional activity.
Tokenization Could Become Ethereum’s Biggest Growth Engine
The final catalyst highlighted by Chalom is the rapid expansion of real-world asset tokenization.
He described tokenization as an area where Ethereum is positioned to lead due to its established infrastructure and institutional adoption. While the tokenized asset market currently sits around $32 billion, Chalom believes growth could accelerate sharply over the next year.
Major financial firms are already moving deeper into the space. JPMorgan Chase recently filed plans for a tokenized money market fund on Ethereum, while Franklin Templeton partnered with Ondo Finance to bring tokenized ETFs onchain.
Also Read: Solana ETFs Explode With $58M Inflows as Ethereum Faces Fresh Sell Signal
If adoption continues at its current pace, tokenized assets on Ethereum could eventually grow into the hundreds of billions — or even trillions — of dollars.
Ethereum’s next breakout may depend less on hype and more on structural developments across regulation, institutional adoption, and financial innovation. While market volatility remains a concern, growing interest in tokenization and clearer crypto policy could strengthen Ethereum’s long-term position as the backbone of digital finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
