Forbes 2026 Crypto Trends Prediction: What's Next After Volatility Declines?

Original title: 5 Crypto Predictions For 2026: Breaking Cycles And Crossing Borders

Original author: Alexander S. Blume, Forbes

Original translation by Peggy, BlockBeats

Editor's Note: As digital assets gradually move into the mainstream, the industry is undergoing profound changes. After the volatility and adjustments of 2025, the crypto market remains sluggish, investor sentiment is cautious, and the industry faces a critical moment of consolidation and reshaping. However, this downturn is not stagnation, but rather a prelude to the next stage of innovation and maturity.

According to the author, 2026 is poised to be another strong year for digital asset development, driven by accelerating institutionalization and a clearer regulatory framework. This article was written by Alexander S. Blume, CEO of Two Prime and a seasoned digital asset investment advisor. Founded in 2019, Two Prime focuses on digital asset management and institutional-grade financial services, with a strong emphasis on Bitcoin-related asset management, lending, and structured products.

This article will present his five predictions for the crypto market in 2026, covering stablecoins, DATs, market cycles, cross-border liquidity, and product refinement, helping readers grasp the key opportunities and challenges in the digital asset field in the coming year.

2026 will be another strong year for the development of digital assets.

At the end of last year, I predicted that 2025 would be a "transformative year for digital assets," given the significant progress made in mainstream adoption across retail and institutional markets. This prediction has proven true in several ways: increased institutional allocation, greater tokenization of real-world assets, and the development of regulatory and market infrastructure to support cryptocurrencies.

We have also witnessed the rise of digital asset treasury companies (DATs), although this trend remains fragile. Since then, the prices of Bitcoin and Ethereum have risen by about 15%, and these two asset classes have gradually integrated into the traditional financial system and gained wider adoption.

The mainstreaming of digital assets is no longer an issue. Looking ahead to 2026, we will see continued maturation and evolution, with the experimental phase giving way to more stable growth. Based on the latest data and emerging trends, here are my five crypto predictions for the coming year.

DATs 2.0: Bitcoin financial services businesses will gain legitimacy

This year, DATs (Digital Asset Treasury Companies) have experienced rapid expansion, but also growing pains. From liquor brands to sunscreen companies, many have reinvented themselves, claiming to be buyers and holders of crypto assets. However, investor skepticism, regulatory pressure, mismanagement, and depressed valuations are all posing challenges to this model.

Among a series of new projects, some DATs even hold so-called "altcoins," but these are actually just speculative projects lacking historical record and investment value. However, in the coming year, many issues surrounding the DAT market and its strategies will be gradually resolved, and companies truly operating based on Bitcoin standards will find ways to enter the public market.

Many DATs, even the largest, will begin trading at prices closer to their underlying asset value, putting greater pressure on managers to create more value for shareholders more effectively. After all, a company that simply holds a large amount of Bitcoin but does nothing (while maintaining private jets and high management costs) is not a worthwhile investment for shareholders.

Stablecoins will be everywhere

2026 is poised to be a breakout year for stablecoins. USDC and USDT are expected to further penetrate traditional financial transactions and products, no longer confined to trading and settlement scenarios. Stablecoins may not only appear on cryptocurrency exchanges but also enter payment processors, corporate treasuries, and cross-border settlement systems.

For businesses, the appeal of stablecoins lies in their ability to enable instant settlements without relying on slow or expensive bank payment networks.

However, similar to DAT's situation, we may also see the stablecoin market become oversaturated: too many speculative stablecoin projects launching, too many consumer-facing payment platforms and wallets emerging, and too many blockchains claiming to "support" stablecoins. It is expected that by the end of the year, many speculative projects will be eliminated by the market or acquired, the industry will consolidate, and ultimately the market will be dominated by stablecoin issuers, retailers, payment networks, and exchanges/wallets with greater brand influence.

The four-year cycle will become history.

I am now announcing that Bitcoin's "four-year cycle" will officially end in 2026. The market is now broader and more institutionalized, no longer an isolated ecosystem. Instead, a new market structure and sustained buying pressure will change Bitcoin's trajectory, leading to sustained, gradual growth.

This means that overall volatility will decrease, and Bitcoin will become a more stable store of value, thereby driving wider adoption by traditional investors and market participants worldwide. Bitcoin's evolution from a trading instrument to a completely new asset class will be accompanied by more stable cash flows, longer holding periods, and less "cyclical" volatility.

US investors will gain access to offshore liquidity.

As digital assets become more mainstream, and with a favorable policy environment, the development of relevant rules and market structures will enable US investors to access overseas cryptocurrency liquidity. This change will not happen overnight, but over time we will see more approved affiliated institutions, more sophisticated custody solutions, and overseas platforms that meet US compliance standards.

Certain stablecoin projects may also accelerate this trend. Dollar-backed stablecoins already allow cross-border circulation, something traditional bank payment networks cannot do. As major issuers expand into regulated offshore markets, they have the potential to connect US capital to global liquidity pools. Simply put, stablecoins may finally achieve what regulators have been striving to achieve: connecting US investors to international digital asset markets in a clear and traceable manner.

This is crucial because offshore liquidity plays a key role in price discovery in the digital asset market. The next stage of market maturity will be the standardization of how cross-border markets operate.

The products will be more refined.

The new year will bring a new round of refinement to Bitcoin-related debt and equity products, along with the emergence of more trading products centered around Bitcoin-denominated returns. Even investors who were previously cautious about digital assets will begin to embrace this more complex product system.

We are likely to see structured products backed by Bitcoin, and strategies designed to generate real returns through Bitcoin exposure, rather than simply betting on price volatility. ETFs are already moving beyond simple price tracking, offering the ability to generate returns through staking or options strategies. While fully diversified total return products remain limited, derivatives will become more sophisticated and better integrated with standard risk frameworks. By 2026, Bitcoin will no longer be just a speculative tool, but will gradually become a core component of the financial infrastructure.

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