Venture capital firm outlines cryptocurrency expectations for coming year
As 2025 winds down, one of the most prominent venture capital firms in the technology space has shared its thoughts on where cryptocurrency might be heading next year. Andreessen Horowitz, often called a16z, manages over $40 billion in assets and has been involved in crypto investments for years. Their new report looks ahead to 2026 with some specific predictions that caught my attention.
I think what’s interesting here is the timing. Bitcoin hasn’t quite reached that psychological $100,000 mark everyone was talking about, and we’re seeing various predictions emerge as the year closes. a16z’s take feels grounded in their experience, though of course predictions are just that—predictions.
Stablecoins emerge as payment infrastructure
The report really zeroes in on stablecoins, which surprised me a bit. According to their analysis, stablecoins have reached an annual transaction volume of $46 trillion. That’s a staggering number when you think about it. They claim this volume is more than 20 times what PayPal handles and about 3 times Visa’s volume.
But here’s the thing—while the numbers look impressive on paper, the report acknowledges stablecoins aren’t really part of daily life for most people yet. The analysts wrote something that stuck with me: “Today, you can send a stablecoin in less than a second and for less than a cent.” The technology works, but the connection to everyday financial systems still needs work.
What I gather from their analysis is that the next phase involves bridging this gap. Companies are apparently working on solutions that let people spend stablecoins directly with cards and wallets, integrating with local payment networks and supporting things like QR codes. This feels like a practical next step rather than just more hype.
Tokenization and privacy competition
The report also touches on tokenization, but with a somewhat critical note. They suggest large financial institutions are lagging in this area, which doesn’t surprise me given how slowly traditional finance moves. What’s more interesting is their view that tokenization won’t just be about creating digital copies of existing assets. There might be more to it, though the report doesn’t elaborate much on what that “more” could be.
Privacy-focused blockchains get mentioned as another area to watch. The analysts think the biggest competition in crypto during 2026 will happen among these privacy chains. I’m not entirely sure I agree—there are so many other areas seeing competition—but it’s worth considering.
Prediction markets also get a brief mention as expected to continue growing. This feels like a safer prediction since we’ve seen gradual growth in this area already.
The regulatory context
What the report doesn’t spend much time on, but what I think matters, is regulation. They mention the Genius Act passed in the U.S. this summer regarding stablecoins, but regulatory clarity remains a huge question mark for everything in crypto. Without clearer rules, it’s hard to see how some of these predictions can fully materialize.
Looking at the big picture, a16z’s report offers a mix of obvious observations and some genuinely interesting insights. The stablecoin infrastructure development seems like the most concrete prediction, while the privacy blockchain competition feels more speculative. As with any predictions, we’ll have to wait and see what actually unfolds in 2026.
One final thought: reports like this from major investment firms can influence where money flows, which in turn can shape what gets built. That’s perhaps the most important takeaway—when a firm managing $40 billion speaks, people in the industry tend to listen.
