From Security Tokenization to Prediction Markets: 7 Major Crypto Dividends to Watch in 2026

Dec 22, 2025 20:48:47

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Original Title: 7 Crypto Lessons and Trends to know before 2026

Original Author: 0xJeff, AI Investor

Original Compilation: Deep Tide Techflow

2025 was filled with unprecedented turmoil and change. We welcomed a U.S. president who allegedly supports cryptocurrency and artificial intelligence. However, the market in 2025 did not usher in the anticipated bull market, but instead became a "slaughter" year for the entire industry.

Most altcoins experienced a decline of 80%-99% in 2025
Bitcoin's market cap share returned to levels seen in 2019-2020 (over 60%), outperforming most coins
Ethereum (ETH) traded at prices similar to those in 2022
The altcoin market was highly fragmented (with 40 to 50 million coins available)
Despite continuous positive news in the industry (such as clearer regulatory frameworks, ETF approvals, corporate adoption of blockchain technology, and institutional investment in BTC, ETH, and altcoins), the performance of the stock market in 2025 completely overshadowed the crypto market

Despite the pain and turmoil, 2025 was still seen by many as the "year of maturity" for the industry, but it also witnessed the exit of a large number of practitioners and investors.

So, for those who remain steadfast in the crypto space, here are the key points to understand before 2026 arrives:

Let’s dive deeper ↓

Prediction Markets: Multifunctional Trading Tools

Prediction markets became one of the fastest-growing verticals in 2025—weekly nominal trading volume first reached $3.8 billion, with Polymarket, Kalshi, and Opinion becoming the dominant platforms in this field.

Despite ongoing debates about whether "prediction markets are equivalent to gambling," the U.S. Commodity Futures Trading Commission (CFTC) views them as event contracts or binary options based on real-world event outcomes. The CFTC's innovation-friendly stance, coupled with increased market demand for betting/predicting, drove rapid growth in prediction market trading volume in 2025.

From the perspective of trading tools, prediction markets exhibit great flexibility. They can be seen as a more user-experience-optimized options tool (though still lacking in liquidity).

You can use leveraged trading in any market, choose "yes/no" directional bets, use them as hedging tools (by holding spot positions elsewhere), or earn profits and potential airdrop rewards by executing delta-neutral strategies (equally distributing "yes/no" shares in the market).

Cash-Secured Puts and Covered Calls

These two options strategies are well-suited for investors looking to manage their investments more conservatively.

Instead of directly buying or quickly selling altcoins when prices drop, you can generate cash flow by selling call or put options. If the price reaches a certain target, you can choose to buy low or sell your altcoins; if the price does not reach the target, you will recover your principal.

This strategy is one of the best ways to generate high annual percentage yields (APY) for your altcoins or stablecoins.

The only thing to note is that your principal will be locked for a period (usually 3-5 weeks), but you will receive the option premium (the premium) immediately when selling call or put options.

Narrative Fatigue + Equity vs. Tokens = Return to Fundamentals

The speed of market narrative rotation has significantly accelerated, with hot topics that used to last for weeks or even months now lasting only a few days at most.

The crypto community (CT) is shifting from chasing narratives to focusing on real fundamentals (such as user numbers, revenue, and growth metrics). The market is more inclined to assess metrics of real businesses and clarify the value transfer relationship between businesses and tokens.

However, this year, in the battle between equity and tokens, we witnessed too much chaos, especially in the mergers and acquisitions (M&A) sector:

Pumpfun acquired Padre (a trading tool), leaving Padre's token holders completely in the dark. After the acquisition announcement, the PADRE token plummeted by 50%-80%, triggering a strong backlash from the community. To quell the discontent of the Padre community, Pumpfun promised to airdrop PUMP tokens based on the PADRE holdings value before the acquisition announcement.
Circle acquired Axelar but similarly ignored Axelar's token holders. After the acquisition, the AXL token fell sharply. This is recent news, and what will happen next remains to be seen, but the community is already furious (which is understandable).

The debate between equity and token holders is intensifying, leading us to a deeper question…

Market Governance Organizations and Ownership Tokens

MetaDAO launched a fair, transparent, and tamper-proof ICO launch platform characterized by high liquidity, relatively low fully diluted valuation (FDV) structure, and no venture capital (VC) or private placement allocations. Additionally, it introduced mechanisms such as performance-based team unlocks and potential fund recovery features.

This structure grants token holders true ownership, control, and alignment of interests, effectively addressing issues such as project teams absconding, token dumping, opaque operations, and improper acquisitions.

Colosseum (an independent organization accelerating the Solana ecosystem) recently launched "STAMP" (Simple Token Protocol, a market protection mechanism), a new investment contract designed to merge private venture financing with public MetaDAO ICOs, ensuring investor rights and aligning with MetaDAO's on-chain governance.

The MetaDAO model has given rise to a new category of "ownership tokens," which are launched through MetaDAO's ICO. Many projects that have gone live have performed strongly—such as Umbra, Omnipair, and Avici, which saw high demand during their fundraising periods and significantly outperformed the market in 2025.

Through the MetaDAO model, the importance of token holders has been elevated; they truly have a voice and actually own the project. Project revenues and fees are no longer directed to equity holders but directly benefit token holders.

The trend of market governance organizations and ownership tokens is likely to continue into 2026 and will intertwine with upcoming trends…

The Rise of Tokenized Securities

On-chain liquidity is constrained, and market participants' focus is gradually shifting toward fundamentals, revenue, buybacks, and other real values. Meanwhile, companies are starting to adopt stablecoins, and more institutions are investing capital into the crypto space. Recently, tokenized securities have become simpler and more feasible than ever, especially for regulated institutions.

On December 11, 2025, the tokenized securities sector saw a significant regulatory breakthrough. The U.S. Securities and Exchange Commission (SEC) issued a "No-Action Letter," clearly stating that it would not take enforcement action against the DTCC (Depository Trust & Clearing Corporation) subsidiary DTC's pilot tokenization program. The pilot includes the tokenization of Russell 1000 index constituents, U.S. Treasury securities, and major ETFs.

This mechanism will implement compliant centralized tokenization operations through DTC during the pilot period (starting in the second half of 2026 for three years), directing activities to regulated infrastructure rather than fully decentralized alternatives.

This means that starting in 2026, we will see more tokenized securities projects, which also implies an increase in demand for tokenized stocks, accelerating the convergence between traditional finance (TradFi) and decentralized finance (DeFi).

Consumer Crypto Products and Perpetual Contracts Become Crypto Core

In 2025, consumer crypto products and perpetual contracts (Perps) became the core hotspots of the crypto industry:

Pumpfun peaked in 2024-2025
Virtuals adopted a similar model but incorporated a new AI smart agent narrative
Zora made similar attempts in the content token space, gaining support from Jesse
Collectibles, fantasy football, and prediction markets were extremely popular in 2025

These are all consumer-oriented products that allow crypto natives to have fun while attracting non-crypto users (such as participants in prediction markets) to earn profits while enjoying themselves.

Crypto itself is like a game, and trading is a form of entertainment. Therefore, consumer products that are novel and effectively combine both tend to stand out more.

Perpetual contracts (Perps) also have similar appeal, as they allow users to make precise bets on asset price fluctuations.

If you pay attention to the key metrics of prediction markets and perpetual contracts, you will find that both reached all-time highs (ATH) in 2025. These figures seem to "shout" that the product-market fit (PMF) in the crypto space has emerged: weekly nominal trading volume in prediction markets reached $3.8 billion, while weekly trading volume in perpetual contracts soared to $340 billion (monthly trading volume of $1.3 trillion, setting a new record).

This is why people are so eager to participate in platforms like Hyperliquid, Lighter, Aster, Polymarket, and Opinion. Huge activity, massive demand, and substantial capital flow directly translate into higher valuations and more airdrop rewards.

Consumer crypto products are also full of potential, but in 2025, we have yet to see truly sustainable consumer crypto products. Sportsdotfun (SDF) showed good growth momentum early on and is currently undergoing community financing on Legion and Kraken. While the future of this sector remains uncertain, the outlook is exciting for now.

From this, we can learn that if you want to find your edge in this market, you should either invest in platforms (like prediction markets, perpetual contracts, consumer crypto products) or actively engage in these categories:

Learn how to trade perpetual contracts
Make predictions in prediction markets
Use consumer crypto products

Through these practices, you can better understand the market and find your competitive advantage. Otherwise…

You Can Become a "Narrator"

That's right, now The Wall Street Journal (WSJ), Silicon Valley, and various tech practitioners are starting to embrace the role of "narrator." Many startups are opening positions for "narrators."

In the crypto space, this has long been a common phenomenon. We have "yappers," key opinion leaders (KOLs), and narrators who have been discussing projects and helping to build the crypto community for years (even before Kaito introduced the concept of "yappers").

But now, it seems the whole world is beginning to realize the importance of having the right narrative and conveying brands, products, and positioning in the right way.

However, the role of a narrator goes far beyond that of a "yapper." Currently, in the crypto space, many "yappers" simply copy and paste content to "boost their presence" rather than genuinely trying to learn and understand what they are discussing.

This presents an opportunity for those who truly understand the industry, possess expertise, or are curious about learning to stand out—whether in the crypto community (CT) or in broader fields.

Those who excel at storytelling can expand their brand influence and ultimately gain the freedom to choose: they can opt for independent development or be "acqui-hired" by startups and projects that align with their brand.

In 2025, we have already seen successful cases of this dynamic. For example, Kalshi recruited well-known figures from the crypto community, while some crypto projects successfully shaped their brand image and attracted more users through close partnerships and ambassador programs (like sharing badges).

If you are good at storytelling, then this era is your stage!

Core Summary

The crypto market of 2024-2025 is like playing a game of "Monopoly";

Whereas 2026 will be more like the domain of enterprises, startups, and suited financial professionals—less of the "Monopoly" style gameplay, fewer easy money-making opportunities, and less reliance on the narrative of simply "numbers going up."

The future will focus more on fundamentals, alignment of interests, value accumulation, and compound leverage. If you cannot cultivate a true competitive advantage, even if you are an OG (veteran player), you may ultimately become someone else's "bag holder."

Your competitive advantage can be any of the following:

Having a clear mind, not blinded by delusions;
Being good at telling compelling stories;
Creating quality products that people truly need;
Insight into trends;
Rational trading, not swayed by emotions.

Stick with it, find your advantage, and you will be rewarded.

Thank you very much for reading! If you want to know my thoughts on some projects and more straightforward ideas, you can check out my The After Hour column on Substack.

Disclaimer

This article is for informational and entertainment purposes only. The views expressed herein are not investment advice or recommendations. Readers receiving this article should conduct their own due diligence based on their financial situation, investment goals, and risk tolerance (not covered in this article) before investing. This article does not constitute an offer or invitation to buy or sell the assets mentioned.