Ethereum’s Tokenized Assets Drive FDV and TVL Growth

Fidelity’s FDIT token hits $260M, showing tokenized assets can grow faster than off-chain AUM suggests.

Ethereum FDV peaks are volatile, while TVL rises steadily, highlighting smoother capital accumulation patterns.

Stablecoins and RWAs increasingly drive ETH value, supporting ecosystem growth and decentralized app activity.

Ethereum’s ecosystem is experiencing renewed growth as tokenized assets and stablecoins expand rapidly. Fidelity’s FDIT tokenized money market fund recently surpassed $260 million in market cap on Ethereum. Fidelity itself manages roughly $6.4 trillion in off-chain assets

Consequently, the market cap of tokenized assets can grow significantly faster than many anticipate. Analysts now observe that stablecoins and real-world assets (RWAs) increasingly drive Ethereum’s fundamental value. Token Terminal noted, “The more assets that get tokenized and used in Ethereum-based apps, the more ETH stands to benefit.”

Ethereum’s fully diluted valuation (FDV) and application total value locked (TVL) data from 2020 to 2025 reflect clear market movements. FDV rose sharply in early 2021, approaching $500 billion by mid-year as ecosystem activity strengthened

Later that year, FDV pulled back amid cooling market conditions. Early 2022 saw another rise, peaking near $600 billion, before declines through mid-2022 due to broader risk-off sentiment and reduced liquidity.

Application TVL Tracks Market Floors

Application TVL started near zero in 2020 and increased steadily through 2021, reaching roughly $200 billion by late that year. It declined through 2022, forming a clear low at point 1 on the chart. TVL then stabilized sideways through 2023 as capital flows became steadier

In 2024, TVL climbed again as decentralized activity strengthened, establishing another floor at point 2. By 2025, TVL surged near 2021 levels, forming point 3 as a support level amid ongoing capital rotation.

FDV and TVL show repeated expansion and contraction cycles. FDV peaks are volatile, whereas TVL rises in smoother accumulation patterns. This indicates that market valuations move faster than underlying locked value. The data emphasizes how capital allocation evolves across decentralized applications during different market phases.

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