Coinbase forecasts steady crypto growth in 2026 as regulation matures

Coinbase has released its predictions for the coming year in its 2026 Crypto Market Outlook report, and the projections are not at over-the-top levels of optimism like other stakeholders. 

Coinbase’s report likens the current market environment to the mid-1990s technology boom rather than the speculative frenzy of 1999.

Other industry actors like Bitwise have predicted that Bitcoin will break its traditional four-year cycle and set new all-time highs, while JPMorgan has penciled in a target of $170,000 for the digital currency based on certain conditions.

Bernstein penciled in its own projection for Bitcoin to probably hit $200,000 by early 2026.

What does Coinbase expect from crypto in 2026?

According to Coinbase, landmark regulatory advances by the Trump administration in 2024 and 2025 have enabled new spot crypto exchange-traded funds and the GENIUS Act, respectively.

Frameworks such as the GENIUS Act, which sets clear rules for stablecoins, have given institutions the confidence they need to commit capital to crypto.

Coinbase expects this trend to continue into 2026 as market structure laws like the CLARITY Act are finalized, making it easier for firms to manage risk and meet compliance requirements. Lawmakers already expect a resolution as early as January 2026.

Also, digital asset treasuries (DATs), which increased the buyer base throughout 2025, have recently experienced valuation-driven consolidation.

Coinbase expects companies to do more than just accumulate digital assets in what it terms a “DAT 2.0” framework, where they specialize in professional trading, custody, and the procurement of sovereign block space.

The money is in innovation

Coinbase’s report also identified several technological transformations that may change the crypto landscape in 2026.

One of its bullish calls is a scenario where privacy features gain more prominence, especially among institutional users demanding more control and confidentiality. In that case, other cryptocurrencies could join Zcash, one of the OG privacy beneficiaries in 2025.

Other blockchains, such as Ethereum, are working on privacy features as well. Also, zero-knowledge proofs, fully homomorphic encryption, and the convergence of artificial intelligence and crypto are expected to gain more traction.

Coinbase also sees more blockchains being built specifically for single-use cases. DeFi platforms are also expected to integrate AI-driven risk management tools, while perpetual futures are moving from isolated leverage products into core DeFi primitives integrated with lending and hedging protocols.

Coinbase forecasts stablecoins maintaining their big lead as the number one use case for crypto. By its projections, the stablecoin market capitalization could touch $1.2 trillion by the end of 2028, driven by growth in cross-border settlement, remittances, and payroll platforms.

Will 2026 be better for Bitcoin?

The report states that there are emerging opportunities in prediction markets thanks to the explosion of platforms like Polymarket.

Tokenized equities represent another segment with compelling growth prospects, offering DeFi-style loan-to-value ratios that materially exceed traditional margin frameworks.

However, despite the developments and market potential, risks persist as Bitcoin’s open interest has declined.

Given that the current price of Bitcoin is around $88,000, Coinbase’s measured optimism is understandable, as its views rest on an analysis of macroeconomic conditions. Renewed interest in the largest cryptocurrency across the board will determine if the rally that is being predicted by other stakeholders will come to pass.

Get up to $30,050 in trading rewards when you join Bybit today