Bank of America Corporation (BoA) has released a research report stating that it expects bullish for the long-term future of cryptocurrencies. The report touched upon the DeFi, DApp and NFT sectors. While it was stated that Bitcoin can cover much more, it was emphasized that cryptocurrencies cannot be ignored anymore as the total crypto market value exceeds 2 trillion dollars. Two potentially promising altcoin markets were highlighted. Users have been warned against some risks…
Altcoin projects are characterized by these areas
The report, released Monday by BoA’s subsidiary BofA Securities, evaluates altcoin projects in the DeFi and NFT sectors. According to the report, with a market capitalization of $2.15 trillion trillion, the cryptocurrency industry is “too big to ignore”. It is also emphasized that Bitcoin has evolved to encompass “much more”.
In the report, Blockchain’s projects were characterized. Definitions were made according to their functionality and use cases. Besides NFTs and DeFis, there were also DApps and stablecoins pegged to fiat currencies. Additionally, central banks’ cryptocurrencies were reviewed in CBDCs. The BofA Securities report described all these sectors:
Tokens acting as operating systems, agentless decentralized applications (DApps), stablecoins pegged to fiat currencies, central bank cryptocurrencies (CBDCs) to replace national currencies, and creators and fans (fan) NFTs that allow connection between
Apart from that, the report also touched on the global benefits of cryptocurrencies:
For us, cryptocurrencies are not about payments per se. They are about a new computing paradigm – a programmable computer that can be accessed anywhere and by anyone, and owned by millions of people around the world.
Year-over-year adoption rate of the industry
The BofA report says that in 2021, cryptocurrencies and venture capital in the blockchain sector have grown dramatically. In the first half of this year, more than 17 billion dollars were invested in the sector, while it was emphasized that in 2020 it was 5.5 billion dollars, which is about 1/3 of this rate. The report also highlighted the recent increasing rates of crypto adoption, estimating that 221 million users worldwide were trading cryptocurrencies or using a Blockchain application as of June 2021, compared to 66 million in May 2020. The following statements were included in the report:
Applications built on this new software architecture seem to grow faster than past technologies. Anyone in a network can set up a process (application or project) that provides consistency and trust.
Beware of high waves in NFT-focused altcoin projects!
As for NFTs, BoA says the momentum gained by the industry has surprised even seasoned crypto users. It was emphasized that the OpenSea NFT market generated more than $2.5 billion in value in the first half of 2021.
Meanwhile, the report was warning of the industry’s emerging NFTs. He touched on some issues regarding fluctuations associated with NFTs. “A full understanding of the high risks in this segment is needed for NFTs to gain real adoption,” he said. The prices of cryptocurrencies and NFT collections have been struggling to reach their former values for months after the April-May peak…
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