The tokenization boom presents significant opportunities for blockchain networks, but debate among analysts centers on whether Ethereum's mainnet will capture its share of this growing market.
Ethereum L1 currently holds nearly zero market share in tokenized stocks on spot decentralized exchanges, according to Lorenzo Valente, head of crypto research at Ark Invest. He noted that Robinhood, Arbitrum, and Base are leading tokenization activity, raising questions about the mainnet's role.
Valente called for a strategic direction, stating that tokenization will reshape the onchain economy and that Ethereum needs clarity on what assets belong on L1 versus Layer 2s. Luigi DeMeo, Chief Strategy Officer at Aave, echoed this concern, noting that Ethereum's first-mover advantage in cryptoassets does not guarantee dominance in new asset classes like stocks.
However, some disagree with the bearish assessment. Analyst Gabriel Shapiro argued that Ethereum benefits either way, as companies tokenize on the mainnet or build Ethereum-based Layer 2s, citing Robinhood Chain as an example. Marius Smith, co-founder of Ethereum Institutional, countered that supply of regulated tokenized assets matters more than trading volume, and that Ethereum should focus on winning issuers and regulated venues rather than competing on subsidized trading activity.
The tokenized securities market currently stands at $3.2 billion and is projected to reach $2 trillion by 2028. Competition for market share is intensifying, with tech giants, traditional brokers, and banks planning to launch blockchains for issuing these products.
