The crypto industry is expected to enter a phase of structural transformation in 2026. The focus will shift away from asset price movements toward fundamental changes in how blockchain, artificial intelligence, and global payment systems operate together. Venture capital firm Andreessen Horowitz (a16z), in its outlook report, highlights several major narratives that are likely to form the backbone of the next-generation crypto ecosystem.

Below are five crypto narratives expected to drive transformation in 2026.

AI Agents Set New Standards
a16z forecasts that AI agents will evolve from simple tools into fully fledged economic participants. In finance and technology, the number of AI agents is expected to vastly exceed the human population.

The key challenge is that AI agents currently lack digital identities, authorization frameworks, and compliance structures. To address this, a16z anticipates the emergence of a new standard called Know Your Agent (KYA). This system links AI agents to their owners, defines permission boundaries, and assigns legal accountability. Without cryptographic identity, AI agents cannot safely transact. With KYA, they could autonomously conduct payments, trading, and real-time value settlement.

Payment Systems Become Internet Infrastructure
As AI agents transact independently, payment systems are expected to undergo a fundamental shift. According to a16z, payments will no longer exist as standalone features but will be embedded directly into internet infrastructure.

In this model, payments occur instantly when AI agents purchase data, pay for GPU computing, or execute API calls. Technologies such as x402 enable permissionless value transfers without intermediaries. Blockchain serves as the core financial layer of the internet, while banks, stablecoins, and settlement systems operate in the background with minimal user visibility.

The Rise of Privacy-Focused Blockchains
The third narrative expected to dominate 2026 is the resurgence of privacy-centric blockchains. a16z believes privacy will become the most powerful competitive advantage, surpassing transaction speed or throughput.

When transactions are private, switching networks becomes costly because migration risks exposing sensitive metadata. This creates a privacy lock-in effect, allowing blockchains with superior privacy features to capture dominant market share.

Prediction Markets Level Up with Crypto and AI
Prediction markets are expected to enter a major expansion phase in 2026. Previously centered on large-scale events such as elections or geopolitics, future markets will offer far more granular contracts, covering micro-policy outcomes, corporate decisions, and interconnected event chains.

Crypto and AI are projected to play critical roles in resolving outcome determination challenges. Decentralized governance, LLM-based oracles, and AI agents analyzing global signals are expected to serve as key solutions. With crypto providing verification layers and AI powering analysis, prediction markets could evolve into highly precise decision-making tools.

Stablecoins Become the Backbone of Global Payments
Stablecoins are projected to be one of the strongest narratives in 2026 as transaction volumes continue to hit record highs. Over the past year, stablecoin transaction value reached approximately US$46 trillion—surpassing PayPal and approaching major payment networks such as Visa and ACH in the United States.

The primary advantage of stablecoins lies in their speed and extremely low transaction costs. The biggest challenge now is no longer blockchain technology itself, but integration with everyday financial systems. Innovation has shifted toward on-ramps and off-ramps, with startups linking stablecoins to QR payments, real-time payment systems, debit cards, and interoperable global wallets.

Once this layer matures, stablecoins will move beyond hedging or trading instruments to become the core settlement layer of the internet. Cross-border salaries could be paid in real time, merchants could accept digital dollars without bank accounts, and applications could settle global payments instantly.