Avalanche and Arbitrum One capture 13% of tokenized stock market cap as smaller chains gain ground

The tokenized stock market is no longer a three-chain game. Avalanche and Arbitrum One now collectively account for roughly 12.5% of all on-chain tokenized stock market capitalization, according to Token Terminal data from August 7, 2026. That’s a meaningful slice of a pie that, until recently, belonged almost entirely to BNB Chain, Ethereum, and Solana.

The top three networks still command about 85% of the total market. But the fact that two mid-tier chains have muscled their way to a combined $292 million in tokenized equity value over the past year tells a story about where institutional attention is heading.

The numbers behind the shift

BNB Chain remains the undisputed leader in tokenized stocks, holding 35.4% of the total market cap. Ethereum sits in second at 28.0%, with Solana taking third at 21.5%.

Avalanche comes in at 6.3%, and Arbitrum One trails just barely behind at 6.2%. The gap between those two is close enough that a single large issuance on either chain could flip the ranking.

Over the past year, Avalanche added $177.3 million in tokenized stock market cap. Arbitrum One contributed $114.7 million. Combined, that’s nearly $300 million in new tokenized equity value flowing to chains outside the traditional top three.

The total market cap for tokenized stocks hit a record $2.3 billion as of July 16, 2026.

Why smaller chains are winning share

Avalanche’s architecture, built around customizable subnets, gives issuers the ability to create purpose-built environments for regulated assets. That kind of configurability appeals to firms that need to comply with securities regulations while still benefiting from blockchain-based settlement. The $177.3 million inflow over the past year suggests that pitch is landing.

Arbitrum One, meanwhile, benefits from being an Ethereum Layer 2 network. It inherits Ethereum’s security guarantees while offering significantly lower gas fees and faster transaction finality. For tokenized stock platforms that want Ethereum’s credibility without Ethereum’s cost structure, Arbitrum is an increasingly obvious choice.

Since early 2025, improvements in on-chain trading and settlement systems have made it feasible for smaller chains to support the kind of throughput and reliability that institutional-grade products demand.

What the big three still have going for them

Despite losing share at the margins, the dominant trio isn’t exactly sweating. BNB Chain’s 35.4% market share reflects its massive user base and the Binance ecosystem’s gravitational pull.

Ethereum’s 28.0% share is anchored by its unmatched developer ecosystem and the deepest DeFi liquidity pools in crypto.

Solana’s 21.5% share has been built on raw speed. Its high throughput and sub-second finality make it attractive for trading-focused tokenized stock platforms where execution speed matters as much as cost.

Together, these three chains account for roughly $1.95 billion of the $2.3 billion total market cap.

What this means for the tokenized equity landscape

The challenge is fragmentation itself. A tokenized Tesla share on Avalanche and a tokenized Tesla share on Ethereum are, in practical terms, different assets with different liquidity profiles.

There’s also a regulatory dimension worth watching. Chains that can demonstrate robust compliance tooling, like Avalanche’s subnet architecture, may have a structural advantage in a more regulated future.

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