• Mainstream adoption isn’t so much about the token price as it is about crypto being a part of our everyday lives.

• Stablecoin legislation and increased tokenization of real-world assets could be game-changers for cryptocurrency.

• Institutional investment continues to be a big driver of crypto price movements, especially for Bitcoin.

• 10 Stocks We Like More Than Bitcoin ›

Looking at cryptocurrency prices, market sentiment and headlines, you could be forgiven for thinking the blockchain sky is falling. Since the beginning of October, the global crypto market cap has fallen from $4.2 trillion to $2.9 trillion. And this is extremely unsettling for investors in these assets. However, the cryptocurrency industry also took some steps toward mainstream adoption by 2025 that would have been unthinkable five years ago.

The US government announced a plan to begin including Bitcoin (CRYPTO: BTC) in his strategic reserves. Lawmakers approved a clear legislative framework for stablecoins. US financial regulators began taking a pro-crypto approach, dropping charges against crypto backers that previous appointees had seen as rule breakers. The price of Bitcoin set new highs and traditional financial institutions introduced new crypto products.

These changes may have set the stage for the cryptocurrency to take off in 2026.

There are many ways to define mainstream, but at its core, it is a product or service that is widely recognized and used. Cryptocurrency has a lot of recognition, so much so that you may find yourself talking about it with family members during the holiday season. However, widespread adoption is still a work in progress.

Here are three key factors that could have the potential to more actively incorporate crypto into our daily lives by 2026.

If people start using stable currencies as your preferred payment method, not only would you be talking about crypto over a holiday meal, but by Christmas 2026 you might have used it to buy the food you eat. Stablecoins are essentially tokenized versions of existing currencies such as the US dollar. They offer the ability to make almost instant payments anywhere in the world for a small fee.

The amount of money held in stablecoins has increased since the Guiding and Establishing National Innovation for US Stablecoins Act, also known as the Genius Act, became law in July because there is now a clear and easy way to comply for banks and payment processors to use them. In the coming year, we will likely see stablecoins move from a primarily crypto trading tool to a mainstream payment line. A McKinsey report suggests that the value of stablecoins in circulation could grow from $250 billion by 2025 to $2 trillion by 2028.

Real-world asset (RWA) tokenization is a way to capture ownership of anything from stocks to intellectual property on the blockchain. It’s a powerful idea. It takes some of the friction out of the negotiation. It can also make assets such as real estate or private equity more accessible. This applies to both the type of asset and the minimum amount required to start investing in it.

For example, fractional stocks have become commonplace, but not long ago they were a new innovation that transformed retail investing, making expensive stocks accessible to more investors. Imagine applying the same concept to owning a piece of art or real estate, breaking it up into an unlimited number of small, easily interchangeable pieces. You can also automate things like dividends or other payments.

There is still progress to be made, both in terms of technology and regulations. However, tokenization is already taking off. According to rwa.xyz, there was less than $2 billion in RWA at the beginning of 2024. Now there is more than $18 billion, with almost half in tokenized US Treasuries. By 2026, ownership of even more assets will move to the blockchain.

Clearer regulations and increased trust in digital assets have paved the way for increased cryptocurrency flows by institutional investors. The range of crypto investment products is growing rapidly and you can now access popular altcoins or a selection of cryptocurrencies through exchange traded funds (ETFs). It’s also easier than ever to include Bitcoin in 401(k) savings plans, although questions remain about the merits of including high-risk assets in retirement accounts.

Institutional investment in crypto, particularly Bitcoin, has been a major driver over the past couple of years. Total net assets of Bitcoin ETFs have soared from about $30 billion shortly after their launch in January 2024 to nearly $125 billion today, according to data from Coinglass. While the rapid decline in Bitcoin prices has led to some institutional exits in recent months, this trend is not as drastic as some might expect.

In fact, a recent Bernstein report suggested that “sticky” institutional cash could help Bitcoin reach new highs in 2026 and 2027. According to State Street Investment Management (NYSE: STT)86% of institutional investors owned or planned to buy Bitcoin in 2025. This trend seems likely to continue in 2026.

The recent pullback in the crypto market shows that it is still a risky asset class. Cryptocurrency is a relatively new industry, and many things could happen to derail its progress, from technical glitches to regulatory impediments. That’s why crypto should only represent a small percentage of your portfolio, no matter how interesting its prospects may seem.

Still, we could look back to 2025 as the year crypto went from a fringe asset to a legitimate asset. The topics in this article are not new. What’s new is that they seem to have gained enough momentum to realize their potential. As a result, 2026 may be the year crypto comes into its own.

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Emma Newbery has no position in any of the aforementioned stocks. The Motley Fool has positions and recommends Bitcoin. The Motley Fool has one disclosure policy.

Will 2026 be the year crypto finally goes mainstream? was originally published by The Motley Fool