financialnews

In a recent report the bank said trading activity is likely to stay low and investor excitement may continue to fade. After several years of strong ups and downs the market now lacks clear reasons to move higher.
According to the report crypto trading usually grows when there is a big story. These moments can include new laws major product launches or political changes. In the past such events pushed prices and volumes higher for short periods. But Barclays does not see a similar trigger ahead for 2026. Without something new to drive attention trading volumes may keep falling.

This slowdown is a challenge for platforms that depend on everyday users. These businesses earn most of their income from people buying and selling crypto in spot markets. When fewer trades happen revenue drops as well. Barclays believes this trend could continue through the year making growth harder to achieve.
The bank said spot trading activity already shows signs of weakness. Volumes are lower than in past boom periods. If interest from small investors does not return the situation may not improve soon. Barclays analysts wrote that it is hard to see what could change this direction in the near future.
Regulation could play a role over time. In the United States new laws are being discussed that would explain how digital assets are classified. These rules aim to make it clear which regulator oversees each type of asset. Clear rules could help companies plan better and reduce risk. They could also make it easier to launch new products. Still Barclays does not expect regulation alone to boost trading in 2026.
The report paid special attention to one large public crypto company. The firm is working on new areas such as futures products and digital shares. It is also investing in new technology and compliance systems. Barclays sees these efforts as positive for the long run. But the bank warned that lower trading volumes and higher costs could limit profits next year. As a result the analysts lowered their price outlook for the stock.
Tokenized assets are another area to watch. Many large financial firms are testing ways to move real world assets onto blockchains. This idea has gained interest across the industry. Even so Barclays said this market is still very small. It is unlikely to add meaningful income in 2026. Most benefits from tokenization may come later

Politics has become more friendly toward crypto in recent months. This has helped improve market mood. However Barclays believes much of that optimism is already reflected in prices. New laws still need approval and could face delays or challenges. Until rules are fully in place their effect may remain limited.
Overall Barclays sees 2026 as a waiting period for crypto. Trading activity is slowing and clear growth drivers are missing. Companies are focusing on building for the future rather than quick gains. Whether these long term plans succeed will become clearer in the years ahead.
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