According to Coinbase’s head of investment research David Duong, momentum from cryptocurrency exchange-traded funds, stablecoins, tokenization and clearer regulation is expected to reinforce itself in 2026, supporting faster adoption across the sector.

In a year-end post shared on X on Wednesday, Duong said 2025 marked a turning point, as spot ETFs opened regulated access to crypto, corporate balance sheets began incorporating digital asset treasuries, and tokenization and stablecoins became more embedded in core financial processes.

“We expect these forces to compound in 2026 as ETF approval timelines compress, stablecoins take a larger role in delivery-vs-payment (DvP) structures, and tokenized collateral is recognized more broadly across traditional transactions,” he said. Data from analytics platform Demand Sage shows that global crypto adoption has remained relatively stable in recent years, edging from 10.3% in the first quarter of 2023 to 9.9% in the first quarter of 2025.

Regulation reshapes institutional engagement

Duong pointed to regulatory progress in 2025 as a critical catalyst, arguing that clearer global frameworks have helped shift crypto from a niche market toward a more established component of global financial infrastructure. This shift, he said, is influencing how institutions approach strategy, risk management and compliance.

In the United States, lawmakers moved toward clearer oversight of stablecoins and market structure through the GENIUS Act, while Europe consolidated its approach with the Markets in Crypto-Assets regulation, known as MiCA. “The practical consequence is real operational readiness: better policy guardrails that enable product innovation, market maturation, and the embedding of crypto rails into payments and settlements. This is the foundation on which the next phase of institutional adoption is being built,” Duong said.

He added that “policy clarity, institutional architecture, and broader participation are converging to make crypto part of the financial core,” and noted that if the industry continues to deliver strong products, responsible regulatory engagement and user-focused design, “we can help ensure that the next wave of innovation reaches everyone, everywhere, all the time.”

Demand diversifies beyond single narratives

Duong also highlighted a structural change in crypto demand, noting that the investor base has broadened well beyond early adopters. A wider mix of allocators and end users is now shaping market behavior, reducing reliance on any single investment narrative.

“Demand no longer hinges on a single narrative; it reflects the interplay of macroeconomics, technology, and geopolitics, and it is increasingly anchored to a long-term, strategic thesis informed by crypto’s increasing integration into mainstream finance,” he said. Over time, he added, this evolution could support more durable capital flows and reduce purely speculative turnover.

Sources:

https://cointelegraph.com/news/crypto-forces-compound-2026-adoption

https://x.com/DavidDuong/status/2006381532756295969

https://www.demandsage.com/crypto-adoption-statistics