The past year has revealed a fundamental shift in the profile of Bitcoin holders that signals a changing market landscape. As of December 2025, BTC held on exchanges has dropped to its lowest level in five years - 2.94 million BTC - while holdings by public companies and ETFs continue to climb, now exceeding 2.5 million BTC combined. This migration from retail to institutional ownership is more than a statistic. It marks a turning point that could potentially reduce volatility, temper
speculative price swings, and soften the severity and duration of future bear markets. In other words, we may be moving toward less pronounced market cycles, reflecting a more stable and mature asset class.

This shift is part of a broader transformation that we are currently going through. Digital assets are evolving from speculative instruments into strategic financial tools. Today, over 200 public companies hold Bitcoin on their balance sheets, signaling growing confidence in crypto as a means of diversification and long-term value preservation. A similar trend is observed at Binance. We saw a 14% increase in institutional users and a 13% rise in institutional trading volume compared to last year. In 2026, we expect this trend to accelerate as corporate treasuries diversify beyond Bitcoin and Ethereum into select altcoins, and as governments and public institutions engage more actively through regulatory frameworks and pilot programs.

Looking forward, 2026 will be a year where regulatory clarity and institutional participation come together to reshape the market's foundation. Governments are no longer passive observers; they are actively crafting frameworks and launching initiatives like central bank digital currencies (CBDCs) that are aimed at bringing digital assets into mainstream finance with greater transparency and trust. This evolving regulatory landscape will help shift valuations toward fundamentals, such as real-world utility, sustainable economics, and compliance. This is especially the case for altcoins, which have historically been more volatile.

We also anticipate the continued rise of regulated digital asset avenues such as ETFs, which provide safer, more accessible entry points for investors beyond Bitcoin. Meanwhile, stablecoins - often called crypto's 'killer app' in this cycle - have surpassed $300 billion in market capitalization this year, driven largely by clearer regulations such as the GENIUS Act in the US. Stablecoins are proving their value not just as payment tools but as enablers of financial inclusion, allowing users
worldwide to transact seamlessly almost instantaneously at negligible cost.

Technological innovation will remain a key driver for the industry as well. The convergence of artificial intelligence and blockchain is creating smarter, more secure financial infrastructure. These two technologies will form the backbone of every economic sub-sector in the future. At Binance, AI has already been widely integrated to help boost platform efficiency and security. For instance, it has helped our users prevent millions in losses and will play an even greater role in personalizing user experiences, enhancing compliance, and safeguarding the ecosystem moving forward.

Ultimately, 2026 will be about moving beyond hype and speculation toward delivering real, scalable value. We believe that the crypto industry's next chapter is one of purposeful adoption, trust, and long-term impact. When innovation meets responsibility, that is when digital assets will become an integral part of everyday finance.