In a recent announcement, Haseeb Qureshi, a partner at Dragonfly Capital, shared an insightful array of predictions on the future of the cryptocurrency market for 2026. Published on social media platform X, Qureshi’s insights suggest that the forthcoming year will present surprises in both positive and negative forms, while the general trends continue to evolve.
Bitcoin and Market Dynamics
Qureshi’s overarching macroeconomic forecast predicts a bullish outlook for Bitcoin, projecting it will exceed $150,000 by year-end. However, he anticipates a decrease in Bitcoin’s market dominance throughout 2026. “BTC is > $150K by year-end, but BTC dominance decreases in 2026,” he noted, emphasizing that this scenario does not automatically trigger a high-intensity alt season. He expects altcoins to experience a rebound but suggested the peaks will not be as extreme as in previous cycles.
Furthermore, he expressed skepticism about the performance of newer fintech chains, positing that metrics like daily active addresses and stablecoin flows would likely disappoint. “Despite the excitement around the recent crop of fintech chains, their metrics will underwhelm,” he stated, specifically naming Tempo, Arc, and Robinhood Chain as expected underperformers. In striking contrast, Qureshi anticipates robust performance from established networks such as Ethereum and Solana, with top developers gravitating towards neutral infrastructure chains.
Qureshi highlighted the anticipated proliferation of enterprise-blockchain solutions, with more Fortune 100 companies venturing into the blockchain space. He teamed regulated legacy players as major contributors to this trend, mentioning networks like Avalanche and ZK Stack as potential leaders.
In a bold prediction, he speculates that a major tech player, potentially Google or Apple, could launch or acquire a crypto wallet in 2026, indicating a significant shift in consumer access to crypto services.
DeFi Evolution and Stablecoin Expansion
On the decentralized finance (DeFi) front, Qureshi predicts a restructuring of the perpetuals market, with consolidation into just a few major players controlling significant market shares. He projects equity derivatives gaining traction, with equity perps surpassing 20% of total DeFi perp volume by the end of the year. However, he warns of a reputational risk stemming from a potential insider trading scandal that could capture mainstream attention.
Regarding stablecoins, Qureshi expects a substantial increase in supply, with an anticipated growth rate of around 60% in 2026, predominantly dominated by the US dollar. Notably, he reports that Tether’s dominance could see a slight decline to approximately 55% as the market diversifies.
He points to the explosive growth of stablecoin-backed cards, forecasting a staggering 1,000% increase in 2026, which would make them a primary vehicle for stablecoin utilization, particularly in emerging markets.
Regulatory Climate and Market Adaptations
On the regulatory side, Qureshi anticipates the passage of a clarity act in the U.S. by 2026, albeit with potential buyer’s remorse from crypto insiders. He warned of increased scrutiny, especially if Democrats regain control of the House, triggering hearings into previous affiliations with figures like Trump in the crypto domain.
As the prediction markets gain traction, he predicts an expansive growth trajectory amid unforeseen legal battles over sports betting regulation. He forecasts that platforms like Polymarket may increasingly dominate market shares, as competitors struggle to gain footing.
AI and Privacy in Future Crypto Applications
Although Qureshi sees AI’s application within crypto as limited primarily to software engineering and security, he acknowledged its minimal role in broader financial transactions in 2026. On the subject of privacy and identity verification, he expressed doubts about the effectiveness of services like Worldcoin and suggested that solutions like ZK Passports may gain more traction given their accessibility.
Despite his mixed feelings regarding privacy, he remains convinced that the mainstream crypto community may largely continue current practices rather than shifting to more private solutions. As we approach 2026, the entire crypto landscape seems poised for dynamic and transformative growth.
At the time of this reporting, the total cryptocurrency market capitalisation clocked in at an impressive $2.93 trillion.
