Bank of America Corporation (BoA), one of the TOP 4 banks in the United States has published a new research report that offers a bullish outlook for the long-term prospects of cryptocurrencies, such as DeFi and NFT.
The report, published by BoA subsidiary BofA Securities on October 4, offers a nuanced assessment of the digital asset sector highlighting innovations in decentralized finance (DeFi) and nonfungible tokens (NFT).
The report asserts that the $2.15 trillion market cap of the cryptocurrency sector is too big to ignore.
The bank went on to highlight that the digital asset ecosystem has evolved to include much more than just Bitcoin.
The report notes that tokens that act like operating systems, decentralized applications (DApps) without intermediaries, stablecoins, CBDCs that will replace national currencies, and non-fungible tokens (NFTs) are the main focus.
“For us, digital assets are not just about payments. It's about a new computing paradigm where computers are programmable and accessible anywhere and by anyone and owned by millions of people around the world." Write the report.
The BofA report notes that venture capital in the crypto and blockchain sectors has increased dramatically in 2021.
There was more than $17 billion later invested into the industry during the first half of the year.
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And more than triple the reported $5.5 billion injected into the sector over the entirety of 2020.
The report also highlights the recent surge in crypto adoption, estimating that at 221 million users globally have traded cryptocurrencies.
Otherwise, at least blockchain application users in June 2021 have more than 3x increased compared to 66 million in May 2020.
“Applications built on this new software architecture appear to be growing faster than previous technologies. Anyone on the network can create processes (applications or projects) that provide consistency and trust.” Write the report.
Looking at the NFT, the BoA went on to state that the sector's rapid growth surprised even veteran crypto users.
They highlight the OpenSea marketplace that managed to generate over $2.5 billion in the first half of 2021.
However, the report warns of the volatility associated with the nascent NFT sector, and states,
“The increased risk in this segment needs to be fully understood before NFT can achieve true adoption. But we will give the sector a chance to continue to grow and offer a bullish outlook.”
source:coinvestasi.com
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