Analysts at the second-largest US bank, Bank of America, are optimistic about the future of digital assets and blockchain. They are especially interested in the development of Ethereum, DeFi, dApps and NFT.
The research arm of Bank of America has released the Digital Asset Primer report, which cites blockchain as “the most exciting new market” to emerge in recent years.
Analysts looked at various aspects of the industry – popular cryptocurrencies, decentralized applications (dApps), the decentralized finance (DeFi) industry, stablecoins, and non-fungible tokens (NFT).
Bank of America researchers noted that the digital asset sector has grown too large to be ignored. They argue that there are other interesting areas in the industry besides Bitcoin.
“We believe that cryptocurrencies can form a whole new class of assets. Bitcoin is important as it has a market capitalization of around $ 900 billion, but the ecosystem has much more to offer, ”the report says.
Analysts emphasize that smart contract platforms like Ethereum have the potential to provide a wide range of services and functions. The report notes:
“In the near future, you will be able to use blockchain to unlock your phone, buy stock, a house or part of a Ferrari, receive dividends, borrow, borrow or save money, or even pay for gas or pizza.”
According to Bank of America, investments in digital assets and blockchain companies surpassed $ 17 billion in the first half of 2021 alone, up from $ 5.5 billion for all of 2020.
The report also mentions the recent resurgence of the NFT market. According to analysts, DeFi and NFT are the most innovative elements in the cryptocurrency industry, and the rise of NFT has come as a “surprise to everyone.”
Bank of America also identified potential obstacles to the further development of the cryptocurrency industry. Analysts detail the looming threat of increased regulation, especially in light of recent comments from US Securities and Exchange Commission (SEC) chairman Gary Gensler.
The report also details the potential legal, regulatory, technological and environmental risks for various sectors of the industry. The bank’s analysts believe blockchain will provide disruptive innovation.
“We believe the digital asset ecosystem is just getting started, despite rapid growth and market capitalization at the level of some of the largest public companies in the world,” the report said.
Recall that in August, Bank of America published a report highlighting the benefits of El Salvador’s initiative to adopt bitcoin as a quality legal tender.
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