How will the crypto market evolve in 2026? Institutional participation models, privacy technologies, and tokenized assets become new focal points

Question

【Blockchain Rhythm】A major analysis report on the 2026 crypto market will be released on December 20th. The report suggests that the crypto market environment in the first half of next year will be more similar to 1996 rather than 1999— in other words, still in the exploration phase, not at the bubble peak.

The US economy remains resilient, but uncertainty is quite high. This means that the attitude of institutional investors will be crucial.

Interestingly, the way institutions participate is changing. Previously, it was simply about asset allocation; now it needs to upgrade to “DAT 2.0” mode— not just buying and selling, but requiring professional trading capabilities, asset custody, and the ability to acquire blockchain space. This essentially raises the bar for infrastructure requirements.

On the technical side? The demand for privacy technologies like zero-knowledge proofs and fully homomorphic encryption will rise— because with institutional involvement, data privacy must be prioritized. The combination of AI and encryption is also a key focus, with promising prospects for automated agents. Additionally, application-specific blockchains, cross-chain interoperability, and tokenized assets (including tokenized stocks) are listed as key areas for 2026. Overall, the market is shifting from retail-driven to institution-driven, with infrastructure and privacy needs becoming new growth points.

FlatlineTrader · Accepted Answer

1996? So that means we have to wait, don&#39;t rush to all in

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DAT 2.0 sounds complicated, but to put it simply, institutions want to play deeper

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Privacy technology is heating up... what about those small coins, they seem to be left behind

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The US economy is resilient but has high uncertainty, this logic is a bit convoluted

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Wait, can automated agents really work? Or is this just another hype point

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Institutional entry = infrastructure needs upgrading, which means gas fees will soar

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The 1996 model... we are still far from this round, dream time is going to be extended

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I agree that the demand for zk-SNARKs has increased, but it will take a few more years to be realized

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So the conclusion is to continue building without speculation in 2026? That&#39;s a bit dull

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I see the combination of AI encryption as having more hype elements

GasGrillMaster · Answer

Is 1996 the benchmark? Dude, are you saying there are still plenty of opportunities? I bet the institutions won&#39;t know how to play this round.

DAT 2.0 sounds impressive, but to put it bluntly, it just requires more professionalism. What about retail investors, haha?

The privacy technology To da moon aspect is reliable; institutions are scared because data is real money.

Wait, can AI encryption actually be implemented? Or is this just another wave of concept hype?

It&#39;s 2026 and we&#39;re still in the exploration phase, so all my worries this year have been for nothing.

Will black technology like zk-SNARKs really become mainstream? It feels like it will always remain on PPT.

The institutions&#39; attitude is key; that statement is enough, everything else is just a supporting act.

Is the window in the first half of 2026 really that crucial? It feels like betting on the second half is more reliable.

With higher infrastructure requirements, small exchanges are likely to be eliminated.

BlockchainRetirementHome · Answer

The reference to 1996 is quite interesting; can we create another wave?

Institutions are really going to play with Depth this time; DAT 2.0 sounds different, not as crude as before.

If privacy technology takes off, those brothers who have been lying in ambush for ZK are definitely going to laugh this time.

AI + encryption, let&#39;s hope it&#39;s not just another hype concept...

It feels like infrastructure is the real opportunity.

FOMOmonster · Answer

1996 huh? That means there's plenty of time for us to get on board, no rush.

DAT 2.0 really depends on how institutions play it; it seems like infrastructure is the next bottleneck.

Privacy technology needs to be in place before institutions dare to enter; I agree with this logic.

AI combined with encryption, automated agents... feels like we need to learn new things all over again.

While uncertainty is high, the attitude of institutions is the real key, and that makes sense.

SatoshiHeir · Answer

It should be pointed out that the 1996 analogy contains a clear fallacy. Based on on-chain data, the current institutional allocation scale has far exceeded that of the early internet, disproving the notion of the "exploration phase."

DAT 2.0 model? Laughs. Essentially, it remains a game of asset rights wrapped in fiat currency thinking. Undoubtedly, the true decentralized vision has long been compromised here.

The rise in privacy technology is indeed a good sign, but the fundamental reason is not "institutions coming in"—it's an inevitable result of regulatory pressure. The set of zero-knowledge proof technologies was already validated by those who understand the core technology back in 2020.

InfraVibes · Answer

1996? Damn, that's quite bold for a benchmark. So we're still in the early stages now.

DAT 2.0 sounds like a new play designed for big players. Projects that can't keep up with infrastructure are starting to panic.

Privacy technology is finally gaining traction. Once institutions get involved, data security has to be taken seriously.

AI + encryption is really becoming mainstream, but automation might actually have some real potential.

Institutional entry is a double-edged sword; their influence is growing larger and larger.

RadioShackKnight · Answer

The 1996 analogy is brilliant, but it's really not the peak; it feels like there's still more to come.

Institutions are really starting to get creative; DAT 2.0 sounds quite professional.

If privacy technology advances, which projects should we pay attention to?

Could infrastructure become the next hot spot?

The combination of AI and encryption feels like the real trending opportunity.

FarmToRiches · Answer

1996, right? Then we have to wait. Let's stock up first.

The institutions are serious this time. Infrastructure needs to keep up.

Privacy technology has long been a priority. It depends on who can take the lead in deployment.

AI encryption combined... sounds impressive, but it's indeed the next step.

DaoGovernanceOfficer · Answer

so they're comparing 2026 to 1996... empirically speaking, that's a *wild* oversimplification. the data doesn't really support treating it like some linear tech adoption curve, ngl

but okay, the DAT 2.0 framing—finally someone gets that infrastructure isn't just scaling capacity. voting mechanisms matter here too, nobody talks about *that* though 🤓

BearMarketHustler · Answer

1996? That's still early. I think by 2026, we'll still be laying the foundation.

Institutions want to upgrade DAT 2.0, right? Basically, the requirements are getting higher and higher. Projects that can't keep up with infrastructure will fade away.

I'm convinced privacy technology is gaining popularity, but do so many people really care about zero-knowledge proofs? Most people just want to make quick money.

AI encryption is another new story with fresh imagination space. I wonder who will get caught in another wave of retail investors getting burned.