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

Editor's Note: As digital assets gradually move towards the mainstream, the industry is undergoing a profound transformation. After experiencing the volatility and adjustments of 2025, the crypto market remains sluggish, investor sentiment is cautious, and the industry is facing a crucial moment of integration and reshaping. However, this downturn is not stagnation, but a prelude to the next stage of innovation and maturity.

In the author's view, as institutionalization accelerates and regulatory frameworks gradually clarify, 2026 is expected to be 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 financial services, with a strategic focus on Bitcoin-related asset management, lending, and structured products.

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

2026 is poised to be another strong year for the development of digital assets

At the end of last year, I predicted that 2025 would be the "year of transformative implementation of digital assets" because significant progress has been made in the mainstream adoption in both retail and institutional markets. This prediction has been validated in several aspects: an increase in institutional allocation, tokenization of more real-world assets, and the development of regulatory support and market infrastructure for cryptocurrencies.

We have also witnessed the rise of Digital Asset Treasury Companies (DATs), although this trend still appears fragile. Since then, the prices of Bitcoin and Ethereum have risen by about 15%, with both assets gradually integrating into the traditional financial system and gaining wider adoption.

The mainstreaming of digital assets is no longer a question. Looking ahead to 2026, we will see continued maturity and evolution, with the experimentation 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 Companies) experienced rapid expansion, but it also came with growing pains. From alcohol brands to sunscreen companies, many have reshaped their identities, claiming to be buyers and holders of crypto assets, but skepticism from investors, regulatory pressure, poor management, and depressed valuations have challenged this model.

In a series of new projects, some DATs even held so-called "shitcoins," which are actually speculative projects lacking historical records and investment value. However, in the coming year, many issues surrounding the DAT market and its strategies will be gradually addressed, and companies truly operating based on the Bitcoin standard will find a path to enter the public market.

Many DATs, even the largest ones, will start trading at prices closer to the value of their underlying assets. Managers will face greater pressure to create value for shareholders more effectively. After all, a company that simply holds a large amount of Bitcoin but does nothing (while maintaining a private jet and high management fees) is not a wise investment for shareholders.

Stablecoins Will Be Everywhere

2026 will be the year of stablecoin explosion. 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 appear not only on cryptocurrency exchanges but also in payment processors, corporate treasuries, and cross-border settlement systems.

For businesses, the appeal of stablecoins lies in achieving instant settlement without relying on slow or expensive banking payment networks.

However, similar to the situation with DATs, we may also see an oversaturation in the stablecoin market: too many speculative stablecoin projects going live, an abundance of consumer-oriented payment platforms and wallets emerging, and too many blockchains claiming to "support" stablecoins. By the end of the year, many speculative projects will be phased out or acquired by the market, the industry will consolidate, and it will ultimately be dominated by stablecoin issuers with more brand influence, retailers, payment networks, and exchanges/wallets.

The Four-Year Cycle Will Become History

I am now ready to announce: Bitcoin's "four-year cycle" will officially come to an end in 2026. Today's market is more extensive, more institutionalized, and no longer an isolated ecosystem. In its place is a new market structure and sustained buying pressure, which will alter Bitcoin's trajectory, leading to continuous, incremental growth.

This will mean an overall decrease in volatility, with Bitcoin becoming a more stable store of value, driving broader adoption by global traditional investors and market participants. Bitcoin will evolve from a transaction tool into an entirely new asset class, accompanied by more stable fund flows, longer holding periods, and less "cyclical" volatility.

U.S. Investors Will Gain Offshore Liquidity

As digital assets move further into the mainstream and favorable policy environments drive related rulemaking and market structure, U.S. investors will be able to access offshore cryptocurrency liquidity. This change will not happen overnight, but over time, we will see more approved counterparties, improved custody solutions, and offshore platforms that can meet U.S. compliance standards.

Some stablecoin projects may also accelerate this trend. Dollar-backed stablecoins have already demonstrated cross-border circulation, something traditional bank payment networks cannot achieve. As major issuers expand into regulated offshore markets, they have the potential to connect U.S. capital to the global liquidity pool. In essence, stablecoins may ultimately achieve what regulators have long sought: a clear, traceable way to connect U.S. investors to the international digital asset market.

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 cross-border market operations.

Products Will Become More Specialized

The new year will bring another round of specialization in Bitcoin-related debt and equity products, alongside more trading products with Bitcoin-denominated returns at their core. Even investors who were previously cautious about digital assets will begin to embrace this more complex product ecosystem.

We are likely to see structured products collateralized by Bitcoin, as well as strategies designed to generate real returns through Bitcoin exposure, not just betting on price fluctuations. ETFs have already begun to move beyond mere price tracking, offering features to generate returns through collateralization or option 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 part of financial infrastructure.

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