As major asset managers and industry experts begin to outline their expectations for 2026, one analyst on Crypto Twitter (CT) has summarized what he broadly predicts for the crypto market next year.
CT’s new consensus suggests the market is preparing for a more selective, fundamentals-driven phase rather than a broad speculative boom.
Crypto sector likely to perform well in 2026
In a recent post on X (formerly Twitter), analyst Ignace pointed out that Crypto Twitter’s 2026 outlook reflects a significant change from its 2022 outlook.
“The consensus is exactly the opposite of what it was when we entered the bull market in 2022,” the analyst said.
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At the time, many investors expected Ethereum (ETH) and altcoins to outperform Bitcoin. Instead, Bitcoin dominated and the market followed suit. Sentiment has been quite bullish this year, with many expecting valuations of major assets to rise.
However, the market moved in the opposite direction. As a result, the outlook for Crypto Twitter has shifted to more cautious and focused expectations. Here’s what we think CT will do well in 2026.
1. Bitcoin
Bitcoin is widely seen as the leading outperforming stock heading into 2026. This confidence comes despite Bitcoin’s recent weakness.
BeInCrypto emphasized that BTC will lag behind precious metals and stocks in 2025. Additionally, assets are down 6.2% year-to-date.
If the decline continues, Bitcoin could end the year in the red, ending its two-year run of positive gains. Still, the CT consensus continues to favor Bitcoin over the broader crypto market.
At the same time, concerns about quantum computing remain part of the discussion. Quantum advances pose structural risks to Bitcoin cryptography. Nevertheless, analysts are divided on whether such a threat is imminent or still years away.
2. Real World Assets (RWA)
Real World Assets (RWA) and tokenization are emerging as one of the key growth areas for cryptocurrencies in 2026. The RWA sector has already weathered the market downturn with decentralized value and steady user growth, and that momentum is likely to continue.
“RWA and tokenization are going to grow big, but it’s hard to find great agencies that are betting on growth (Plasma, stable and terrible TGE are clear examples),” Ignas wrote.
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Notably, Plume CEO Chris Yin predicts that both value and users will grow 10-20x by 2026, even in conservative projections. Furthermore, Jesse Knutson, head of operations at Bitfinex Securities, has suggested that the tokenization market will reach at least $100 billion by the end of 2026.
3. Prediction markets and perpetual financial instruments
CT predicts that prediction markets and perpetual products will increasingly “financialize everything,” extending to real-world events and pre-IPO products.
According to a recent report from BeInCrypto, interest in prediction markets accelerated in the second half of 2025. From October to November, trading volumes on predictive platforms exceeded those of meme coins and non-fungible tokens (NFTs). User activity has also increased as participants turn to these platforms to speculate on outcomes ranging from election results to weather forecasts.
Institutional involvement continued. Major companies such as Coinbase and Gemini are starting to move into this space to capitalize on the growing momentum.
The perpetual market is also gaining attention. Coinbase previously identified real-world perpetual assets as a key investment theme for 2026, citing its potential to unlock new forms of on-chain financial exposure.
“With no need to secure the underlying asset indefinitely, a market can be formed around virtually anything, making anything ‘perpetual’ possible,” Coinbase said.
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Crypto sector may face pressure
Besides Bitcoin, Ignace pointed out that the CT consensus suggests that big profits are likely to be concentrated in only a few winners. Many other sectors may also face continued pressure as capital becomes more selective.
1. Extensive altcoin market
The market primarily expects continued pressure on the altcoin sector as a whole, with many tokens at risk of going to zero. This may occur due to high token emissions, limited retailer participation, and weak institutional demand.
As a result, expectations for a broader altcoin season like 2021 remain low. BitGet CEO Gracie Chen said in October that altcoin season is unlikely to materialize in 2025 or 2026.
2. Decentralized Finance (DeFi) Tokens
The analyst added that the recent ongoing governance dispute surrounding Aave (AAVE) also raises concerns for all DeFi tokens.
The discussion centers around Aave’s decision to integrate CowSwap into its front end instead of ParaSwap. Critics claim the move, decided after Aave Labs received a grant from CowSwap, takes up to $10 million in potential annual revenue out of the DAO.
In response, Aave founder Stani Kulechov and Aave Labs argued that the revenue generated from the front end is separate from core protocol revenue and is voluntary.
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The market is divided on whether Ethereum’s success will lead to gains for ETH.
Meanwhile, the author revealed that there is no clear market story about what will happen to Ethereum (ETH).
On the other hand, some remain bullish on Ethereum as it benefits from the rapid expansion of tokenized assets. Some are still not convinced whether this adoption will bring material benefits to ETH holders.
“ETH as an asset does not necessarily benefit from tokenization. Ethereum will just become a boring infrastructure layer, with most of the benefits reaped by user-facing apps. Similar to Facebook, Microsoft has benefited the most from the rise of the internet,” Ignace said.
Cryptocurrency Twitter market focus in 2026
In addition to these, Ignace outlined that tokens launched at high fully diluted valuations and limited circulating supply are considered “permanently shorted.” This essentially means that these tokens are consistently good candidates for shorting (betting).
Market data supports this view. According to Memento Research’s analysis of 118 token generation events in 2025, projects that debuted with high FDV are struggling to maintain momentum. Notably, of the 28 tokens launched at fully diluted valuations of $1 billion or more, none are currently trading in positive territory.
Finally, the market is increasingly focusing on the rights of token holders, with an increased focus on revenue generation. These debates are expected to intensify and continue until 2026.
As the crypto industry matures, it is likely to become less driven by speculation and hype, but at a much larger scale. At the same time, crypto Twitter’s influence on the broader narrative may weaken as crypto-native voices become increasingly less visible.
