Crypto's Current Slump: Why Experts Still See Potential

The crypto market is in a slump. Bitcoin and Ethereum are both headed for their first losing year since 2022. But experts are not too worried. They think this might just be a temporary setback. Right now, things look tough. There are worries about Bitcoin's cycle and the economy is not doing well. This has caused prices to fall. But experts believe this downturn might have more to go before it turns around. Despite the current challenges, there are some positive signs. Stablecoins, which are tied to stable assets like the US dollar, have seen big growth. They grew over 50% in 2025. Experts think this growth will slow down in 2026, but it won't go backward. Tokenized real-world assets are also gaining traction. These are assets like real estate or art that are turned into digital tokens. This market grew from $5. 9 billion to $18. 5 billion in 2025. Experts think it could reach $50 billion in 2026. Prediction markets are another area of growth. These markets allow people to bet on future events. Sports betting is driving a lot of this growth. Volumes in these markets have nearly tripled year over year.Ethereum is also performing well. Its ecosystem is active and this is supporting its value. Ethereum is a key player in stablecoins, tokenization, and layer-2 networks. Experts see rising on-chain activity as a positive sign. Global crypto mergers and acquisitions hit a record $8. 6 billion in 2025. This is a big jump from $2. 17 billion in 2024. Experts say this is due to a more pro-crypto regulatory stance and increasing policy clarity. Experts expect the Digital Asset Market Clarity Act to pass in 2026. This could make it clearer what is a security and what is a commodity. This could reduce uncertainty and speed up institutional participation. But experts also expect digital asset treasury accumulation to slow significantly in 2026. They say this is because valuation premiums are compressing and sentiment is cautious. Instead of aggressive token accumulation, experts say digital asset treasuries are likely to focus on buybacks, mergers and acquisitions, and strategic ecosystem investments.