Galaxy Digital has shared its predictions for the cryptocurrency markets for 2026.
The company’s report indicates that following challenging market conditions in 2025, 2026 will see an acceleration in institutional adoption, stablecoins challenging traditional payment infrastructures, and blockchain-based financial products becoming mainstream.
According to Galaxy Digital, Bitcoin is poised to finish 2025 near the levels it started at. The first 10 months of the year saw a strong rally, with regulatory reforms and ETF inflows driving Bitcoin to an all-time high of $126,080 in October. However, subsequent macroeconomic disappointments, shifts in investor narratives, the liquidation of leveraged positions, and whale selling disrupted market equilibrium. Prices retreated during this period, and by December, Bitcoin had returned to the $90,000 range.
The report states that uncertainty regarding the Bitcoin price for 2026 is high. It notes that options markets are pricing in quite wide price ranges, such as $70,000 to $130,000 for mid-2026 and $50,000 to $250,000 for the end of the year. Galaxy Digital argues that if Bitcoin fails to sustainably settle above the $100,000-$105,000 range in the short term, downside risks persist. However, in the long term, with increased institutional access and loosening monetary policies, Bitcoin could establish itself in a position similar to gold as a “hedge against monetary devaluation.”
The company explains its Bitcoin price predictions as follows:
“BTC will reach $250,000 by the end of 2027. While 2026 is too chaotic to make predictions, it is still possible for Bitcoin to reach a new all-time high in 2026. Options markets are currently pricing in equal probabilities of $70,000 or $130,000 for the end of June 2026 and equal probabilities of $50,000 or $250,000 for the end of 2026.”
Predictions regarding the Layer 1 and Layer 2 ecosystems indicate that the total market capitalization of “Internet Capital Markets” on Solana will reach $2 billion in 2026. It highlights the acceleration of the shift from memecoin-focused activities to on-chain business models that generate real revenue. Furthermore, it predicts that at least one major Layer 1 network will integrate a revenue-generating application directly at the protocol level, channeling the generated value back to the native token. Conversely, it is stated that current proposals to reduce inflation on Solana will not be accepted in 2026.
In the stablecoin and tokenization sector, Galaxy Digital predicts that stablecoin transaction volume will surpass that of the ACH system. According to the report, stablecoin supply is showing a compound annual growth rate of 30-40%, with transaction volumes increasing in parallel. With the regulatory framework becoming clearer in 2026, stablecoins are expected to take on a more central role in the global payment infrastructure. Furthermore, it is noted that consolidation will occur among stablecoins developed in partnership with traditional financial institutions, with users gravitating towards a few large and widely accepted digital dollars.
In the DeFi space, decentralized exchanges (DEXs) are projected to account for over 25% of spot trading volume by the end of 2026. Futarchy-based governance is expected to become widespread in DAOs, with treasury assets managed under this model projected to exceed $500 million. Furthermore, the total size of crypto-backed loans is expected to surpass $90 billion, and stablecoin interest rates are projected to remain relatively low and stable.
Another notable topic in the report is privacy-focused cryptocurrencies. Galaxy Digital predicts that the total market capitalization of privacy tokens could exceed $100 billion by the end of 2026. Increased concerns among institutional investors regarding on-chain visibility are cited as factors strengthening demand in this area. Furthermore, weekly trading volume on platforms like Polymarket is expected to surpass $1.5 billion in the prediction markets.
On the traditional finance front, Galaxy Digital predicts that more than 50 spot altcoin ETFs, in addition to numerous crypto-themed ETFs, could be launched in the US. Predictions also include net inflows into spot crypto ETFs exceeding $50 billion by 2026, major asset allocation platforms including Bitcoin in their model portfolios, and more than 15 crypto companies going public or listing on exchanges in the US.
*This is not investment advice.