Bank of America (BoA) publishes a research offers a long-term bullish outlook for cryptocurrencies, specifically two areas that are drawing a lot of community attention.
The report released on October 4th by subsidiary BofA Securities offers a positive assessment of the digital asset sector and highlights the innovations that are taking place in the DeFi and NFT sectors.
The report claims that the $ 2.15 trillion market cap of cryptocurrencies is “too big to be ignored,” and notes that the digital asset ecosystem relies on “much more” rather than just Bitcoin has grown.
The BoA describes the sector as “operating system-like tokens, decentralized applications (DApps), stablecoins, digital central bank currencies (CBDCs) as a substitute for national currencies, and NFT enables a connection between creators and fans” and adds:
“For us, digital assets are not about payments. It’s a new computing paradigm – a programmable computer that is accessible anywhere and to everyone and that is owned by millions of people around the world. ”
The BofA report says venture capital in the crypto and blockchain sector grew significantly in 2021, noting that more than $ 17 billion was invested in the industry in the first half of this year, more than that Three times the $ 5.5 billion invested in this sector compared to all of 2020.
The report also highlights the recent surge in crypto adoption, estimating that by June 2021, 221 million users worldwide had traded crypto or used blockchain apps – compared to 66 million in May 2020.
“Applications based on this new software architecture seem to evolve faster than previous technologies. Anyone on the network can set up a process (application or project) that provides consistency and reliability, ”the report said.
Looking at NFT, the BoA notes that the explosive growth of the sector has surprised even seasoned crypto users, noting that the OpenSea NFT market generated more than $ 2.5 billion in the first half of 2021.
However, the report warned of the volatility associated with the emerging NFT sector, saying that “the increased risks in this segment must be fully understood before NFT can gain real adoption.” NS “.
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According to Cointelegraph