Crypto Forecast 2026 by BloFin Research: Short Layer and Changing Trends

New report from BloFin Research outlines a detailed picture of the key drivers shaping the cryptocurrency market in 2026. Led by analyses from NS3.AI, the study identifies opportunities and challenges across short-term layers as well as long-term trends that will influence how investors and institutions approach this space.

Bitcoin Cycle Drivers and Ethereum’s Short-Term Position

Bitcoin continues to demonstrate strong cyclical momentum, especially when considering movements on the short-term layer. The report indicates that Bitcoin operates in predictable cyclical patterns, opening analytical opportunities for both traders and institutional investors. In contrast, Ethereum shows underlying strength that exceeds what its asset value suggests. Although price volatility may occur on the short-term layer, Ethereum’s long-term infrastructure remains resilient, supporting sustainable growth.

Layer 1 Competition and DEX Maturity

The competitive landscape among Layer 1 blockchains is becoming increasingly complex. Different platforms are vying for dominance in a challenging market. Notably, decentralized exchanges (DEXs) are experiencing significant maturation, though limitations remain in perpetual DEXs—platforms that enable margin trading. This development reflects the crypto community’s demand for decentralized trading tools, especially on short-term layers where quick decision-making is essential.

From Privacy Coins to Prediction Markets

An interesting trend identified is the resurgence of privacy coins like Zcash compared to Monero. These assets are reaffirming their value as privacy concerns grow. Simultaneously, prediction markets are evolving into core financial infrastructure, expanding DeFi’s functionality beyond simple token swaps.

Future: Hybrid Models and Institutional Roles

The report forecasts increasing influence of institutional investors in the crypto space. A prominent trend is the development of hybrid trading models that seamlessly integrate centralized exchanges (CEXs) and decentralized exchanges (DEXs). This combination allows users to leverage CEX liquidity with DEX transparency, creating more flexible solutions for both short- and long-term layers. Continuous technological advancements will play a crucial role in implementing these models and shaping the future of crypto markets.