David Duong interprets the new 2026 crypto market landscape: How stablecoins, DAT, and prediction markets are reshaping the industry ecosystem

Recently, seasoned industry investment researcher David Duong released an in-depth analysis of the crypto industry in 2026. In this market outlook report, he pointed out that the resilience of the US economy and improvements in labor productivity will support the growth of the crypto asset market. Unlike other pessimistic forecasts, this analyst believes that next year’s market dynamics are closer to the moderate growth phase of 1996 rather than the bubble pattern of 1999, although market uncertainties should still be watched carefully.

Professionalization Shift in the DAT 2.0 Era

David Duong noted that digital asset token (DAT) attracted more institutional investors’ attention in 2025, but valuation concentration appeared afterward. Looking ahead to 2026, DAT will undergo a major iteration — evolving from simple asset accumulation to a specialized trading ecosystem. The core of this upgrade is that the future DAT system will regard the blockchain space as a key commodity resource, conducting professional-level procurement, storage, and trading around sovereign blockchain space, rather than remaining at the basic asset accumulation level.

Awakening of Token Economic Value Capture Mechanisms

As global regulatory frameworks become clearer, the economic rights of token holders are increasingly deeply tied to actual platform use cases. According to David Duong’s analysis, mainstream protocols are exploring diversified value return mechanisms, including fee distribution, asset buybacks, and token burning mechanisms. This marks a fundamental shift of the token economy from pure conceptual narratives to models linked to real income.

Privacy Technology Empowers On-Chain Ecosystem

Frontier technologies such as zero-knowledge proofs (ZKP) and fully homomorphic encryption (FHE) will continue to iterate in 2026. With the widespread application of these privacy protection solutions, the privacy needs of on-chain transactions will also significantly increase, and the growth potential of such application scenarios is expected to be substantial.

Explosive Growth in Prediction Market Trading Volume

The most promising area is prediction markets. David Duong predicts that, influenced by adjustments in US tax policies, users will accelerate their shift toward derivative prediction markets. Although market fragmentation may pose risks, professional prediction market aggregation platforms are expected to become mainstream gateways, with weekly trading volume potentially rising to tens of billions of dollars.

Diversified Expansion of Stablecoin Application Scenarios

By the end of 2028, the global stablecoin market cap is expected to surpass $1.2 trillion. David Duong emphasizes that fields such as cross-border payment settlements, international remittances, and salary payments will see a surge of new applications, with stablecoins becoming a key bridge connecting traditional finance and the digital economy.