7 encryption trends and lessons to master before 2026

Compilation: Vernacular Blockchain

The year 2025 is filled with unprecedented turmoil. Despite the arrival of a supposedly “pro-cryptocurrency, pro-AI” U.S. president, 2025 did not show a bull market, but rather a “massacre” across the entire industry.

• The vast majority of altcoins experienced a decline of 80%-99% in 2025.
• Bitcoin Dominance (BTC.D) Returns to 2019-2020 Levels (greater than 60%), outperforming the vast majority of altcoins.
• The trading price of Ethereum (ETH) has fallen back to 2022 levels.
• The altcoin market is extremely fragmented, with the number of Tokens circulating in the market reaching 40 to 50 million.
• Despite the continuous positive developments in the industry (clearer regulations, ETF approvals, corporate adoption of Blockchain, institutional entry, etc.), the performance of the US stock market completely outshines cryptocurrencies.

The year 2025 is seen by many as the “year of maturity” for the industry, although it will come with great pain and the departure of many practitioners. For those who still hold their ground, it is essential to understand the following key points before moving into 2026:

1. Prediction Markets 是万能工具

Prediction markets are the fastest growing vertical in 2025. Polymarket, Kalshi, and Opinion dominate the field, with weekly nominal trading volume exceeding $3.8 billion for the first time.

• Regulatory Positioning: The CFTC views it as an “event contract” or “binary option” based on the outcomes of real-world events. This pro-innovation stance has led to a surge in trading volume.
• Trading Flexibility: The prediction market is extremely comprehensive. It can serve as a better user experience options tool, allowing you to go long/short, hedge risks, or engage in risk-free arbitrage (Delta-neutral) and earn airdrop rewards by hedging between “yes/no”.

2. Cash-secured puts and Covered calls

These are two strategies that are very suitable for conservative investors, aimed at managing assets in a more responsible way.

• Strategic Advantage: Instead of blindly bottom-fishing or directly cutting losses, you can earn cash flow (premium) by selling options. If the price reaches the target level, you passively bottom-fish or take profit; if it doesn't reach, you earn high interest and reclaim your principal.
• Applicable Scenarios: This is one of the best ways to earn high annualized returns (APR) on stablecoins or altcoins. The only cost is that the principal will be locked for 3-5 weeks.

3. Narrative Fatigue + Equity vs Token = Return to Fundamentals

The narrative rotation speed is extremely fast; narratives that used to last for months can now only be maintained for a few days. Market focus is shifting from “storytelling” to “real fundamentals” (user numbers, revenue, growth metrics) and the value capture between Tokens and businesses.

• Conflict between Equity and Tokens: In 2025, several M&A (merger and acquisition) fiascos occurred. For example, Pump.fun acquiring Padre and Circle acquiring Axelar both led to token holders being neglected, resulting in a sharp decline in token prices and community anger.
• Lesson: The market is starting to realize that if the revenue flows to equity holders rather than Token holders, then the Token is “unsustainable.”

4. Market Governance Organizations (MGOs) and “Ownership Token”

MetaDAO has introduced a fair, transparent, and Unruggable ICO model: high liquidity, low fully diluted valuation (FDV), no VC allocation shares.

• Core Concept: Through on-chain governance and performance unlocking, let Token holders have real ownership and control, solving issues of “rug pulling”, malicious dumping, and opaque operations.
• Trend: This model has given rise to “Ownership Tokens”. Projects like Umbra and Omnipair have performed excellently after crowdfunding through MetaDAO. In 2026, the status of Token holders will be significantly elevated, no longer merely “exit liquidity”.

5. The Rise of Tokenized Securities (RWA)

As on-chain liquidity becomes constrained, everyone is paying attention to income. On December 11, 2025, the SEC's “No-action letter” cleared some obstacles for tokenized securities.

• Regulatory Dividend: Allows DTC (Depository Trust Company) to pilot the tokenization of Russell 1000 securities, government bonds, and major ETFs.
• Future Outlook: Starting in 2026, we will see more regulated tokenized stocks and financial instruments, truly achieving the integration of TradFi (traditional finance) with DeFi.

6. Consumer Crypto and Perps are core.

• Product Logic: Cryptocurrencies essentially carry a gaming and competitive attribute. Pump.fun, Virtuals (AI Agents), and Zora (Content Coin) have all proven that consumer products that can combine entertainment with profit effects stand out the most.
• Data Proof: The trading volume of prediction markets and perpetual contracts (Perps) reached an all-time high in 2025 (Perps monthly trading volume reached $1.3 trillion). This proves the real demand of the market.
• Suggestion: Either invest in these platforms or become a deep participant. Go learn to trade Perps, participate in prediction markets, and use these products; this is where to find market “Alpha”.

7. Become a “Storyteller”

This is not just “Yapping”. The world (including Wall Street and Silicon Valley) is realizing the importance of brand communication and positioning.

• Specialization Trend: The market is flooded with a large number of “parrots” that mechanically replicate content for the purpose of earning points, leaving a vast space for true “professional narrators” who understand technology, have insights, and can explain complex logic clearly.
• Personal Value: Excellent storytellers can not only build personal brands but can also be “acquired” by top startup projects.

Summary: Transformation of Underlying Logic

• The years 2024-2025 feel like playing Monopoly, filled with speculation and bubbles.
• 2026 will enter the “corporatization” era. Less bubble, less “mindless surge” narrative, replaced by fundamentals, value capture, and compound leverage.

If you do not cultivate your real advantages (Edge)—whether it is storytelling ability, trend catching ability, or deep understanding of products—regardless of whether you are an old investor or not, you will ultimately only become Exit Liquidity.

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