Forbes 2026 Encryption Trend Predictions: Where Will It Go After the Drop in Volatility?

null Original Title: 5 Crypto Predictions For 2026: Breaking Cycles And Crossing Borders Original Author: Alexander S. Blume, Forbes Original Translator: Peggy, BlockBeats

Editor’s note: As digital assets gradually move into the mainstream, the industry is undergoing profound changes. After experiencing fluctuations and adjustments in 2025, the cryptocurrency market remains sluggish, investor sentiment is cautious, and the industry is at a critical moment of consolidation and reshaping. However, stagnation is not the case, but rather a prelude to the next stage of innovation and maturation.

In the author's view, with the acceleration of institutional trends and the gradual clarification of regulatory frameworks, 2026 is expected to become another strong year for the development of digital assets. This article is written by Alexander S. Blume, the CEO of Two Prime and a senior digital asset investment advisor. Founded in 2019, Two Prime focuses on digital asset management and institutional-level financial services, emphasizing asset management, lending, and structured products related to Bitcoin.

This article will present his five predictions for the cryptocurrency 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 space over 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 the “transformational implementation year” for digital assets, as significant progress has been made in the mainstream adoption of retail and institutional markets. This prediction has proven to be validated in multiple ways: an increase in institutional allocation, more tokenization of real-world assets, and the development of regulatory and market infrastructure supporting cryptocurrencies.

We have also witnessed the rise of Digital Asset Treasury Company (DAT), although this trend still appears fragile. Since then, the prices of Bitcoin and Ethereum have risen by about 15%, as these two types of assets gradually integrate into the traditional financial system and gain broader adoption.

The entry of digital assets into the mainstream is no longer a question. 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 major crypto predictions for the coming year.

DATs 2.0: Bitcoin financial service companies will gain legitimacy.

This year, DATs (Digital Asset Treasury Company) experienced rapid expansion, but also faced growing pains. From liquor brands to sunscreen companies, many are reshaping their identities, claiming to be buyers and holders of crypto assets. However, investor skepticism, regulatory pressure, mismanagement, and low valuations have all posed challenges to this model.

In a series of new projects, some DATs even hold so-called “altcoins”, but in reality, these are merely speculative projects lacking historical records and investment value. However, in the coming year, many issues surrounding the DAT market and its strategies will gradually be resolved, and businesses that operate on a true Bitcoin standard will find a way to enter the public market.

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

Stablecoins will be everywhere.

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

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

However, similar to the situation with DAT, we may also see an oversaturation in the stablecoin market: too many speculative stablecoin projects being launched, 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 or acquired by the market, leading to consolidation in the industry, ultimately dominated by more brand-influential stablecoin issuers, retailers, payment networks, and exchanges/wallets.

The four-year cycle will become history.

I am now announcing: the “four-year cycle” of Bitcoin will officially declare its end in 2026. Today's market is broader and more institutionalized, no longer an isolated ecosystem. Instead, there is a new market structure and sustained buying pressure that will change Bitcoin's trajectory, resulting in continuous, gradual growth.

This means that overall volatility will decrease, and Bitcoin will become a more stable store of value, thereby driving broader adoption by traditional global investors and market participants. Bitcoin's evolution from a trading tool to a new asset class will be accompanied by more stable capital flows, longer holding periods, and fewer “cyclical” fluctuations.

U.S. investors will gain offshore liquidity.

As digital assets continue to move towards the mainstream, and with favorable policy environments driving this change, the development of relevant rules and market structures will enable U.S. investors to access overseas cryptocurrency liquidity. This change will not happen overnight, but over time, we will see more approved affiliated institutions, improved custodial solutions, and overseas platforms that meet U.S. compliance standards emerging.

Some stablecoin projects may also accelerate this trend. Dollar-backed stablecoins have already been able to circulate across borders, something traditional banking payment networks cannot achieve. As major issuers expand into regulated offshore markets, they have the potential to connect U.S. capital to global liquidity pools. Simply put, stablecoins may ultimately achieve the goal that regulators have been striving to explore: to connect U.S. investors with the international digital asset market 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 phase 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 in Bitcoin-related debt and equity products, along with more trading products centered around Bitcoin-denominated returns. Even investors who previously took a cautious stance on digital assets will begin to embrace this more complex product system.

We are likely to see structured products backed by Bitcoin, as well as strategies aimed at generating real returns through Bitcoin exposure, rather than merely betting on price fluctuations. ETFs have begun to go beyond simple price tracking, offering the ability to generate returns through staking or options strategies. Although fully diversified total return products remain limited, derivatives will become more complex and better integrated with standard risk frameworks. By 2026, Bitcoin will no longer just be a speculative tool but will gradually become a core component of financial infrastructure.

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