The cryptocurrency market is still recovering from a tough few years, and despite even more recent market volatility and global economic uncertainty, the sector continues to attract attention from investors seeking long-term growth and, more importantly, profit. Experts predict that several digital assets with strong fundamentals, innovative technology and increasing institutional adoption could outperform in the coming year. Here are the top five picks for cryptocurrencies to watch and what experts think ...

Core Viewpoint - Standard Chartered analysts predict that 2026 will be a significant year for Ethereum, potentially outperforming Bitcoin, with a bullish price target of $40,000 by the end of 2030, indicating an upside of approximately 1,100% from its current trading price of around $3,300 [1] Group 1: Market Potential - The growth of stablecoins, real-world asset tokenization, and decentralized finance could lead to a substantial increase in funds on the Ethereum blockchain, with a historical correlation between total value locked (TVL) and Ethereum's price [2] - Citigroup estimates that stablecoin issuance could rise from approximately $280 billion today to between $1.9 trillion and $4 trillion, indicating significant growth potential for Ethereum, which currently holds over 50% of the stablecoin market [4][5] - If $950 billion in stablecoins were issued on Ethereum's blockchain, it could increase its TVL by over 1,100%, highlighting the platform's capacity for growth [5] Group 2: Current Market Position - Ethereum is the second-largest cryptocurrency by market capitalization and dominates the decentralized finance sector, despite being overshadowed by Bitcoin in investment terms [3][4] - Currently, Ethereum has $75.32 billion in funds within its ecosystem, which reflects its substantial market presence [5] Group 3: Competitive Landscape - Traditional finance players are developing their own blockchains, which may limit the adoption of public cryptocurrencies like Ethereum, presenting a competitive challenge [6] - Ethereum faces challenges with transaction speeds and scalability, which could allow competitors like Solana to capture market share [6]

Group 1: Ethereum Network Activity - The Ethereum network has reached a new all-time high in daily transaction count, with a 7-day moving average of 2.023 million transactions as of January 4, indicating increased user interaction with the blockchain [1] - The surge in transactions is attributed to the accelerating adoption of real-world asset (RWA) tokenization and a broader market recovery that has increased token transfer activity [1][2] Group 2: Market Sentiment and Price Action - Despite the increase in network activity, Ethereum's price has lagged, currently trading at $3,240, which is a 2.2% increase over the past 24 hours and an 8.9% increase over the past week [3] - Market sentiment shows that traders are more optimistic about gold than Ethereum, with a greater likelihood assigned to gold reaching $5,000 compared to Ethereum's near-term prospects [4] - Investors are more confident in a short-term target of $4,000 for ETH, with a 58% chance of reaching this target, up from 43% at the beginning of the year [5] Group 3: Long-term Outlook and Investment Case - The preference for gold in prediction markets is viewed as a short-term reaction to geopolitical and macroeconomic uncertainties, rather than a fundamental shift away from Ethereum's narrative as "digital gold" [6] - The long-term investment case for Ethereum is supported by its dominance in decentralized finance (DeFi) and tokenized assets, areas where gold lacks functional equivalents [6] - A key catalyst for aligning Ethereum's price with its fundamentals is expected to be a sustained increase in on-chain ETH accumulation by long-term holders, which would tighten effective supply and support price appreciation [7]

Core Insights - The collaboration between SBI Ripple Asia and Doppler Finance aims to develop XRP-based yield infrastructure and real-world asset tokenization on the XRP Ledger, transitioning XRP from a payment-focused asset to a yield-bearing financial instrument [1] Group 1: Partnership and Ecosystem Development - The partnership signifies a step forward for the XRP ecosystem, as SBI Ripple Asia collaborates with a protocol built natively on the XRPL [2] - Doppler Finance's XRPfi infrastructure is designed for regulated environments, bridging traditional financial standards with decentralized ledger technology [2] Group 2: Institutional Custody and Security - SBI Digital Markets, regulated by the Monetary Authority of Singapore (MAS), has been appointed as the institutional custodian, providing segregated and independent custody to mitigate exchange-related risks [3] - The custody structure aims to enhance trust among regulated entities and financial institutions considering on-chain yield exposure via the XRP Ledger [4] Group 3: Market Expansion and Validation - The collaboration strengthens Doppler Finance's presence in Japan, a key market for digital asset innovation and regulation, positioning it as a compliant yield infrastructure provider within the XRP ecosystem [5] - Doppler's infrastructure has been adopted by qualified institutions and integrated with major exchanges and wallets, showcasing its operational stability and attractiveness for institutions seeking on-chain yield [6] Group 4: Strategic Goals - The partnership aims to expand XRP's role as a productive, yield-bearing asset while introducing institutional standards to the broader XRPL ecosystem [7] - The collaboration is focused on accelerating the development of secure and transparent yield infrastructure on the XRP Ledger [8]

Group 1: Core Insights - Singapore ranks first in Bybit's World Crypto Rankings 2025, highlighting its active and structured digital-asset market [1] - The ranking evaluates countries based on user activity, institutional readiness, and cultural engagement, with Singapore scoring 7.5 out of 10 [2] - The United States follows closely with a score of 7.3, supported by trading volumes and a growing base of tokenization projects [3] Group 2: Adoption Models - Two distinct global crypto adoption models are identified: institution-driven patterns in countries like Singapore and the U.S., and everyday usage in countries like Vietnam and Nigeria [4] - Countries facing economic constraints, such as Ukraine and Moldova, show high crypto adoption relative to their population size [5] Group 3: Market Growth - The market for tokenized real-world assets (RWAs) has increased by over 63% since January 2024, reaching $25.7 billion in early 2025 [6] - Private credit and U.S. Treasuries are the dominant sectors within the tokenized RWA market, holding $15.6 billion and $6.7 billion, respectively [6] Group 4: Institutional Readiness - The United States achieves a perfect score in institutional readiness, bolstered by regulatory clarity and strong engagement from Wall Street [7]

Core Insights - Coinbase has launched spot trading for Plume Crypto and Jupiter coin, providing these assets access to a major regulated exchange, which may enhance their market presence and liquidity [1] - The introduction of Plume, a blockchain focused on real-world assets, aims to simplify the deployment of tokenized Treasuries and offer a compliant environment for asset issuance [2] - Jupiter, a Solana-based routing engine, is positioned to benefit from the recent increase in on-chain volume within the Solana ecosystem [3] Market Trends - Real-world asset tokens, including governance coins linked to RWAs, experienced a 23% increase in aggregate market cap in Q4, although trading volume remains inconsistent [4] - The Solana ecosystem has shown consistent user growth despite poor price performance, indicating resilience in user engagement [4] - The demand for RWAs and Solana routing tools will be assessed through early order books, which may indicate future user demand trends as the market approaches year-end [5] Strategic Implications - The addition of Plume and Jupiter to Coinbase's offerings may provide insights into emerging user demand and investment strategies as the crypto market evolves [5] - Plume is targeting funds interested in compliant tokenization infrastructure, while Jupiter could leverage Solana's increasing share of decentralized exchange volume [6]

Core Insights - Grayscale's first US spot exchange-traded fund (ETF) linked to Chainlink opened with strong demand, indicating potential resilience for altcoins in a cooling crypto market [1][2] Fund Performance - The Chainlink ETF attracted $41 million in net inflows and $13 million in trading volume on its debut, marking it as one of the stronger ETF launches this year [3][4] - The performance of the Chainlink ETF surpassed that of the Solana ETF, which had $8.2 million in volume, but fell short of the XRP ETF's $243 million in first-day inflows [4][8] Market Context - The launch of the Chainlink ETF is part of a broader trend, with several new altcoin ETFs being introduced, including those tied to Solana, XRP, and Dogecoin [7] - The Canary Capital XRP ETF debuted with $58 million in net inflows, the highest for any ETF this year, while the Bitwise Solana Staking ETF launched with $57 million [7] Investor Sentiment - Analysts suggest that while the Chainlink ETF's launch was not a "blockbuster," it still indicates that regulated vehicles are preferred by some investors for accessing higher-risk digital assets [4][8] - The Chainlink network's infrastructure role in providing external data for on-chain applications is seen as a factor driving interest in its token, despite its year-over-year decline of over 39% [5][6]

Core Viewpoint - Tom Lee remains optimistic about Ethereum, suggesting that the increasing involvement of major financial institutions could support his long-term price target of $9,000 for the cryptocurrency [1][4]. Institutional Adoption - Major financial institutions, referred to as the "venerable and elite of Wall Street," are increasingly building on the Ethereum blockchain, with Amundi, Europe's largest asset manager, launching a tokenized fund on Ethereum [2][5]. - The trend indicates a broader institutional shift towards public blockchains, as asset managers explore tokenization amid growing regulatory and investor acceptance of digital infrastructure [2]. Significance of Amundi's Move - James Smith from the Ethereum Foundation highlighted the importance of Amundi's deployment on Ethereum, noting that the asset manager, with €2.2 trillion in assets, surpasses major U.S. firms like Fidelity and PIMCO [3]. - The choice of public Ethereum over private chains by institutions like BlackRock, Franklin Templeton, and Amundi signifies a growing preference for Ethereum in real-world asset tokenization [3]. Price Forecast - Despite current market challenges, Tom Lee predicts that Ethereum's price could rebound significantly, estimating a range of $7,000 to $9,000 by the end of January, even as it trades around $2,843, reflecting a decrease of over 5% [4][6].

Core Insights - The tokenization of real-world assets (RWAs) is emerging as a significant trend in blockchain innovation, with expectations of a boom similar to the current stablecoin adoption [1][2] - Stablecoins have demonstrated the potential for digital assets to move seamlessly across global markets, paving the way for the tokenization of tangible assets like bonds and equities [2][4] Group 1: Tokenization and Financial Opportunities - Tokenized assets allow for instant withdrawal or redeployment, enhancing liquidity and financial flexibility [3] - The ability to earn yield while using tokenized assets as collateral can unlock additional financial opportunities [4] Group 2: Democratization and Capital Efficiency - Tokenized funds and equities are expected to lower entry barriers for investors and create innovative ways to utilize these assets as collateral [4][5] - The process of tokenization is complex, requiring a clear understanding of the rights being tokenized and the establishment of a proper legal framework [5][6] Group 3: Ownership and Rights Concerns - There are concerns regarding shareholder rights and the nature of ownership in tokenized stock offerings, as seen in experiments by platforms like Kraken and Robinhood [5] - The representation of tokenized assets can vary, necessitating clarity on whether a token is a true digital twin or merely a swap for economic rights [6][7]

Core Insights - Robinhood Markets has seen a stock price increase of over 925% since January 2024, outperforming many cryptocurrencies, including Bitcoin, which rose nearly 150% in the same timeframe [1][2] - Analysts believe the stock has continued momentum, with Citizen JMP analyst Devin Ryan raising the price target from $130 to $170, anticipating that Robinhood will exceed Q3 earnings expectations [2] - The company's innovative approach, including zero-commission trading and the launch of a crypto wallet, positions it as a leader in the fintech space [4] Company Developments - Robinhood has introduced tokenized U.S. stocks and ETFs for European customers, marking a significant step in asset tokenization, which involves recording ownership of real-world assets on the blockchain [8][10] - The company is developing its own blockchain optimized for real-world asset tokenization, aiming to capture a share of the projected $2 trillion market by 2030 [10] - Robinhood Social, a new platform combining social media with investment activities, is set to launch for a limited number of U.S. customers next year [12] Product Innovations - The introduction of prediction markets allows users to bet on various outcomes, although this has drawn criticism for resembling gambling rather than investing [13] - Robinhood aims to expand beyond traditional brokerage services by offering a range of financial products, including mortgages and banking services [14] - The company is focused on reducing its reliance on transaction fees, which currently account for nearly 60% of its revenue [15] Regulatory Environment - The current pro-crypto administration in the U.S. is fostering an environment conducive to financial innovation, although future regulatory changes could impact Robinhood's diverse product offerings [6][16] - The evolving regulatory landscape may pose challenges, particularly in markets outside the U.S. where regulations may be more stringent [16]