TechFlow news, December 20 — Coinbase Institutional released its 2026 Outlook for the crypto market, providing an in-depth analysis of trends expected in the crypto economy next year.
The report indicates Coinbase's cautiously optimistic stance toward the first half of 2026, with expectations that the U.S. economy will remain resilient and market conditions resembling "1996" rather than "1999." Regarding institutional participation, Coinbase introduces the "DAT 2.0" model, suggesting institutions will shift from simple asset allocation to more sophisticated activities including trading, custody, and blockspace acquisition.
On the technology front, growing demand for privacy is expected to accelerate development of zero-knowledge proofs (ZKPs) and fully homomorphic encryption (FHE). The intersection of AI and cryptocurrency is anticipated to give rise to autonomous agent systems capable of trading independently. Application-specific blockchains are poised to reshape competition within crypto infrastructure, while tokenized stocks could experience rapid growth due to their advantages in atomic composability.
In terms of market opportunities, composable crypto derivatives, prediction markets, and stablecoin payments stand out as key areas of focus. The report projects that the total market capitalization of stablecoins could reach the $1.2 trillion target range by the end of 2028.
