Cryptocurrency analysis firm Messari has shared its predictions for the sector in 2026 in a new report.
The report claims that 2025 will be a highly polarizing year for the crypto industry, with the market offering vastly different experiences to different players.
Messerli said that while 2025 will be the best year in crypto history for Wall Street-based institutional investors, it stands out as a difficult period for individual investors and community-focused participants that has fallen short of expectations.
The report states that Bitcoin has clearly separated itself from all other crypto assets and solidified its position as the dominant cryptocurrency. The relatively weak performance seen in the second half of 2025 was primarily due to selling pressure from older, high-value wallets. Messerli predicts that this is not a permanent or structural problem and that Bitcoin's monetary story will remain intact in the long run.
The report noted that the valuation of many Layer 1 (L1) networks is increasingly decoupled from fundamental indicators. Messari noted that L1 revenues have declined significantly year-on-year, and said current valuations are increasingly based on expectations of a “monetary premium.” With a few exceptions, L1 projects are expected to underperform Bitcoin over the coming period.
Ethereum remains one of the most discussed assets in the space. Although questions about its value accumulation have not completely disappeared, it has been argued that the market will start pricing ETH as a “cryptocurrency” similar to Bitcoin in late 2025. Messerli predicts that Digital Treasure (DAT), centered around Ethereum, could experience a “second life” if a new bull market emerges in 2026.
According to Messari, Zcash (ZEC) is no longer just a niche privacy coin. It is currently priced as a private cryptocurrency. ZEC is positioned as a complementary hedge to Bitcoin as surveillance, corporate controls, and financial pressures increase.
*This is not investment advice.
