Joseph Chalom, CEO of Ethereum treasury company SharpLink Gaming, outlined three catalysts he sees as necessary for Ethereum to extend its rebound.

In an interview cited by Cointelegraph on May 16, Chalom said the key drivers are passage of the CLARITY Act, a recovery in market risk appetite and broader tokenization of real-world assets, or RWAs.

Passage of the CLARITY Act could have an impact beyond the US, reaching major Asian financial hubs including South Korea, Hong Kong, Japan and Singapore, he said. “The world is watching as the US moves away from its previously hostile stance on digital assets and back toward becoming a center of financial innovation.”

Chalom also pointed to easing geopolitical tensions and a rebound in appetite for risky assets. “The crypto market can regain upward momentum once the AI investment theme cools somewhat and uncertainty in the macro environment eases.”

As a third catalyst, he cited growth in the tokenized real-world asset market. “Tokenized financial assets will be an area Ethereum comes to dominate,” Chalom said. He added that the market, currently worth about $32 billion, could expand to $500 billion or even $1 trillion over time.