Coinbase Institutional‘s latest market assessment reveals that cryptocurrencies are moving away from classical “cycle” narratives and shaped by more structural dynamics as they enter 2026. global research director David Duong research analyst with Colin BascoAccording to the report written by , price behavior is now determined by the rhythm of individual speculation as well as the weight of market infrastructure and corporate participation. The institution cited 2026 as a period that will test the scaling and risk management capacity of the core cryptocurrency market under tight financial conditions.
Derivatives Will Be at the Center of Price Discovery
Coinbase Institutional, cryptocurrency He emphasized that price discovery in the market is increasingly taking place through “indefinite futures transactions”. According to the report, derivative products make up the majority of the total volume on major trading platforms, and price formation is more tied to positioning, funding rates and liquidity conditions.
Duong and Basco pointed out that the leverage level fell sharply after the liquidation waves in late 2025. The institution defined the decline in question as a “structural reset” rather than a retreat. He added that excessive speculation has cleared up, while participation in indefinite futures has shown resilience.
The report reveals that tighter collateral practices and improved risk controls contribute to more efficient absorption of shocks. At the same time, if derivative markets continue to be the dominant source of liquidity, price movements in 2026 may require reading the market microstructure rather than narrative momentum.
Prediction Market and Stablecoin Payments Create Permanent Uses
According to Coinbase Institutional prediction markets It sheds its experimental product identity and evolves into a more durable financial infrastructure. The institution sees increasing nominal volumes and deepening liquidity as a signal that its knowledge discovery and risk transfer functions are strengthening.
Fragmentation among forecasting platforms increases the need for aggregation and efficiency, the report says. It was also emphasized that as the regulatory framework became clearer in some regions, the interest of more sophisticated participants increased and the usage moved beyond the crypto-native investor base.
Stablecoins and payments were highlighted as the third growth pillar in the report. Coinbase Institutional, stablecoin He stated that transaction volume continues to grow through clearing/settlement, cross-border transfer and liquidity management instead of speculative buying and selling. According to the institution, payment flows will be further intertwined with automated transaction strategies and new generation applications after 2026. cryptocurrency marketIt can form a basic backbone that can determine the functioning of the
