Ethereum News Today: Tokenized Stocks Surge 220% as Ethereum Dominates $5.76 Billion Market

Tokenized stocks have experienced a dramatic surge in 2025, with a 220% increase in market capitalization, reaching $370 million. This surge marks a significant shift in how traditional assets are being integrated into the blockchain space. Binance Research noted that the growth began in Q2 and has continued into Q3, with Tesla and SPY dominating the on-chain market interest. The rapid adoption has been supported by regulatory clarity from the SEC under its 'Project Crypto' initiative, which is helping to push financial capital markets onto the blockchain [1].

The surge in tokenized stocks is not just reflected in market value but also in user activity. Active on-chain addresses have increased 56 times from 1.6K to over 90K, drawing comparisons to the DeFi boom of 2021. This growth highlights a growing interest in on-chain investing and a shift toward digital asset ownership. In particular, xStocks by Backed Finance has emerged as the leading provider, especially in European and non-U.S. markets. Dune Analytics reported that xStocks’ total trading volume crossed $2 billion for the first time, underscoring strong investor participation [1].

Tesla holds the largest assets under management among tokenized stocks, followed by SPY and Nvidia. Holder numbers also reflect this trend, with Tesla having 11,000 users. Other major names like Apple and Circle also feature in the top five. Despite xStocks launching on Solana (SOL) through platforms like Kraken and ByBit, Ethereum (ETH) remains the dominant chain in terms of market capitalization. At the time of reporting, Ethereum held $4.6 billion out of the total $5.76 billion in the tokenized asset market [1].

Ryan Watkins of Syncracy Capital has projected that the tokenization boom could drive significant demand and value for both ETH and SOL. Binance Research analysts added that if only 1% of global stocks were tokenized, the market could exceed $1.3 trillion, accelerating on-chain asset adoption and DeFi infrastructure [1]. However, recent data from Glassnode indicates that Solana has seen a faster decline in capital inflows compared to Ethereum. This trend is reflected in the SOL/ETH ratio hitting a yearly low, suggesting a stronger ETH position heading into the second half of 2025 [1].

While Ethereum appears to be gaining momentum in the tokenization space, the long-term prospects for Solana remain uncertain. The success of both blockchains will depend on ongoing developments in tokenization infrastructure, real-world asset integration, and regulatory support. The broader RWA tokenization trend, which has grown by 380% since 2022, is also creating new opportunities for blockchain platforms to expand their utility in traditional financial markets [1].

The rapid rise of tokenized stocks has also brought attention to the risks involved, particularly in margin trading. Coinlive recently issued a warning to traders about the volatility and the potential for sudden price movements, urging careful monitoring of margin levels in Cross Margin Pro Mode to avoid liquidation [1]. As the market continues to evolve, investors are advised to remain cautious and conduct thorough due diligence.

Overall, the tokenization of stocks is reshaping the financial landscape, offering new avenues for participation and liquidity. While Ethereum appears to be leading the charge, Solana’s ability to adapt and compete will be a key factor in determining the future of the tokenized asset market.

[1] Source: [1]Tokenized stocks surge by 220% – How will Ethereum, Solana benefit? (https://ambcrypto.com/tokenised-stocks-surge-by-220-how-will-ethereum-solana-benefit/)