Ethereum’s tokenized economy has crossed a major threshold, hitting a massive $200 billion. This figure includes a range of on-chain assets such as stablecoins, tokenized treasuries, RWAs (real-world assets), and other digital financial instruments built on Ethereum.
This milestone signals Ethereum’s strengthening role as the foundation for decentralized finance (DeFi) and tokenized traditional finance (TradFi). With more institutional players moving assets on-chain, Ethereum is no longer just a platform for crypto-native applications—it’s becoming a bridge to the broader financial world.
Supply Shrinks as Exchange Balances Drop
A significant factor fueling bullish sentiment is the declining ETH balances on centralized exchanges. According to blockchain analytics, ETH held on exchanges is now at its lowest level in over a year.
This indicates that more investors are choosing to hold rather than trade or sell their ETH, reducing liquid supply. The drop in exchange balances typically suggests accumulation and confidence in ETH’s long-term value.
BULLISH: Ethereum’s tokenized economy just hit $200B.
— Cointelegraph (@Cointelegraph) November 11, 2025
With exchange balances at yearly lows and TradFi demand surging, some say $ETH is undervalued versus its fundamentals. pic.twitter.com/fG7H5tmdvD
TradFi is Warming Up to Ethereum
Institutional interest is climbing, particularly from the traditional finance (TradFi) sector. Tokenized bonds and other regulated assets are increasingly being issued on Ethereum due to its security, liquidity, and developer infrastructure.
Financial giants are exploring ways to move real-world assets onto Ethereum’s blockchain. This rising demand from institutions adds a strong fundamental layer to the ETH price, yet many analysts believe the current price doesn’t reflect its true value.
With a shrinking supply and growing demand from both retail and institutional sides, many are asking—is Ethereum undervalued? The numbers suggest it might be.