Wintermute: A few large-cap cryptocurrencies absorbed the vast majority of new capital; whether market participation can be expanded in 2026 depends on the direction of liquidity.

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According to ChainCatcher, Windemute's 2026 outlook report states that the anticipated upward trend did not materialize in 2025, and the traditional four-year cycle is becoming obsolete. A few large companies absorbed the vast majority of new capital, leaving the entire market struggling.

Expanding market participation in 2026 depends on whether one of the following three scenarios can significantly increase liquidity so that it is no longer limited to a few large-cap assets.

1. ETFs and DATs expand their investment scope, such as SOL and XRP ETFs.

2. A strong surge in Bitcoin or Ethereum could create a wealth effect, but how much of that money will ultimately flow back into the digital asset space remains uncertain.

3. Retail investors' attention may shift from stocks (artificial intelligence, rare earths, quantum technology) to cryptocurrencies, leading to new capital inflows and stablecoin issuance. (Least likely scenario)

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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