Digital asset markets are entering a structural maturity, moving beyond simple narratives and speculative fervor toward established institutional infrastructure and real-world use cases. Coinbase Institutional’s 2026 market outlook identifies three core areas—perpetual futures, prediction markets, and stablecoins with payments—as the pillars shaping the market’s trajectory. These pillars are expected to drive institutional adoption amid improving regulatory clarity.
Researchers David Duong and Colin Basco say the price formation mechanism is fundamentally changing, shifting from retail spot buying to a derivatives-driven framework centered on perpetual futures. They note that while 2025 ended with large liquidations that reduced leverage, participation in perpetual futures remained robust thanks to stronger risk controls and margin practices.
Prediction markets are poised to mature into real-time financial infrastructure, with increasing institutional participation and clearer regulatory clarity. Trading volumes and liquidity are expanding, serving as means of information discovery and risk transfer, and these markets are expected to evolve beyond betting platforms into advanced information markets. Stablecoins have proven the strongest practical utility in the digital asset ecosystem, enabling cross-border remittances, payments, and liquidity management, with AI applications anticipated to catalyze further growth.
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