According to on-chain metrics tracker Token Terminal, tokenized funds continued to balloon, reaching a total value of $14.4 Billion, piling on $200 million in 2 days. Ethereum is in the lead with 53.3% share of the stated market value.
Meanwhile, there’s a less obvious lead within the metric.
Ethereum Dominates Tokenized Fund AUM
As ETHMagazine reportedearlier, Ethereum remains at the forefront of institutional adoption in the DeFi space, which further drives capital concentration on the network. This leads to an additional bullish metric – its dominance in tokenized funds assets under management (AUM) with 80% of the market share with $16 billion out of pverall $20 billion.
Why The Disparity?
As opposed to the tokenized funds AUM metric, the market share measures the overall number of funds, hence the 53.3% vs. 80% disparity.
The issuer mix further explains the AUM gap. Ethereum hosts flagship institutional products such as BlackRock’s BUIDL and Franklin Templeton’s BENJI. These are balance-sheet-scale cash management and Treasury exposure products. Their deployment size alone outweighs dozens of smaller tokenized funds on other chains. As a result, AUM concentrates even if the product count does not.
Ethereum’s Institutional Fit
Large asset managers prioritize chains where settlement risk, liquidity fragmentation, and operational uncertainty are minimized. Ethereum offers these managers deeper on-chain liquidity and more predictable execution, which makes it suitable for deploying large ticket sizes.
At the infrastructure level, Ethereum can run regulated funds at scale: permissioned ERC-20 tokens, investor whitelists, transfer controls, off-chain NAV with on-chain settlement, and links to custodians and prime brokers. This lowers legal and operational friction for asset managers compared with newer L1s.
Additionally, investor behavior follows capital gravity. Institutions prefer environments where other institutions already operate. Liquidity begets liquidity. Ethereum has become the default coordination layer for tokenized funds, anchoring high-value allocations while other chains capture long-tail experimentation. This is why Ethereum’s AUM share materially exceeds its nominal fund share.
Ethereum users also followed suit. According to David Walsh, Head of Enterprise at Ethereum Foundation, the total number of monthly active users on the Network has reached 13.8 million, a 32.7% increase year-to-date, and an 86.5% increase in the previous year.
