Coinbase Institutional identified perpetual futures, prediction markets, and stablecoin payments as the dominant trends for 2026.
The exchange's research arm argues traditional boom-and-bust cycles are giving way to institutional infrastructure.
David Duong, global head of research, and Colin Basco, research associate, authored the outlook released December 19.
Retail speculation and meme coin mania are fading as professional trading and regulated products take control.
What Happened
Perpetual futures now account for the majority of trading volume across major exchanges.
This fundamentally changed how cryptocurrency prices form.
Leverage, funding rates, and derivatives liquidity now drive price action more than spot buying.
Late 2025 liquidation events sharply reduced leverage.
Coinbase characterizes this as a structural reset rather than retreat.
Tighter margin requirements make markets absorb shocks more efficiently.
Prediction markets are evolving from gambling platforms into legitimate financial tools.
Tax changes in the United States may push more users toward these derivative-anchored markets in 2026.
Stablecoins remain the leading cryptocurrency use case.
Businesses increasingly use them for cross-border payments, treasury management, and settlement.
Coinbase forecasts stablecoins reaching $1.2 trillion by 2028.
The exchange argues artificial intelligence needs programmable, 24/7 financial infrastructure that blockchains provide.
Read also: Analyst Warns Bitcoin May Need A Drop Below $80,000 To Flush Weak Holders
Why It Matters
The report frames 2026 as a test of whether cryptocurrency markets can scale under tighter financial conditions.
Familiar cycle models built around retail speculation are becoming less reliable as institutions grow.
The GENIUS Act for stablecoins gave institutions confidence to commit capital.
Digital asset treasuries expanded in 2025 but recently experienced valuation-driven consolidation.
Coinbase expects a "DAT 2.0" model where companies specialize in professional trading rather than simple accumulation.
Read next: Charles Hoskinson Positions Midnight Protocol As Privacy Layer For Bitcoin And XRP Networks