Crypto markets are coming into a section the place exercise focus issues greater than narrative momentum, in keeping with a brand new outlook from Coinbase Institutional that frames 2026 as a check of whether or not crypto’s core markets can scale below extra disciplined situations.
The report, written by international head of analysis David Duong and analysis affiliate Colin Basco, argues that acquainted crypto cycle fashions — constructed round retail hypothesis, token launches and protocol-specific catalysts — have gotten much less dependable as institutional participation and market plumbing play a bigger function in shaping value conduct.
Perpetual futures more and more anchor value discovery
Coinbase identifies perpetual futures as a central pillar of crypto market exercise, noting that derivatives now account for the majority of buying and selling quantity throughout main venues. In keeping with the agency, this has shifted the mechanics of value formation towards positioning, funding charges, and liquidity situations, fairly than relying solely on retail-driven momentum.
The report states that leverage was sharply lowered following liquidation occasions in late 2025, significantly in derivatives markets. Coinbase characterizes that drawdown as a structural reset fairly than a retreat, arguing that speculative extra was eliminated whereas participation in perpetual futures remained resilient.
Duong and Basco write that tighter margin practices and improved threat controls are contributing to markets that take in shocks extra effectively, at the same time as derivatives proceed to dominate liquidity.
Prediction markets transfer towards sustained relevance
Prediction markets, says Coinbase, are evolving from experimental merchandise into extra sturdy monetary infrastructure. The agency factors to rising notional volumes and deeper liquidity as indicators that these markets are more and more getting used for data discovery and threat switch.
Coinbase additionally notes that fragmentation throughout prediction platforms is driving demand for aggregation and improved effectivity. In keeping with the report, this dynamic is attracting extra refined individuals and increasing utilization past crypto-native merchants, significantly as regulatory readability improves in sure jurisdictions.
Stablecoins and funds underpin real-world exercise
The ultimate pillar of progress for 2026, Coinbase highlights, facilities on stablecoins and funds, which the agency describes as crypto’s most persistent supply of real-world utilization. Duong and Basco write that stablecoin transaction volumes proceed to develop by way of settlement, cross-border transfers, and liquidity administration, fairly than speculative buying and selling.
Coinbase states that cost exercise is turning into more and more intertwined with different components of the ecosystem, together with automated buying and selling methods and rising AI-driven functions. Relatively than viewing synthetic intelligence as aggressive stress, the agency argues these developments reinforce blockchain-based funds as foundational infrastructure inside digital markets.
Coinbase says 2026 will check whether or not these markets can proceed to scale and handle threat below tighter situations, a outcome the agency believes will form the way forward for crypto lengthy after the next value cycle fades.
