Bank of America is bullish on Ethereum, NFTs, and DeFi and not only on Bitcoin as the latest report is glowing and calling the blockchain industry the most exciting new market in the year so let’s read more in our cryptocurrency news today.
The new report from Bank of America Global Research said that the banking giant is quite bullish on digital assets and blockchain technology as the report touched on crypto, NFTs, dapps, and DeFi. Bank of America is the second-biggest bank in the US which gave mixed messages on crypto in the past like slamming Bitcoin as slow and impractical in a research note. Now, the global research division of the banking giant is quite positive about the future of the rest of the crypto industry, describing itself as bullish about the entire ecosystem.
Calling blockchain an exciting new market in years, Bank of America Global Research’s new digital asset Primer is quite enthusiastic about the growing industry and commented on everything from popular cryptocurrencies to decentralized apps, the burgeoning decentralized finance space, NFTs, and stablecoins. Right off the bat, the report stated that the digital asset sector is too big to ignore and that there is more to watch out for beyond Bitcoin. The report read:
“We believe crypto-based digital assets could form an entirely new asset class. Bitcoin is important with a market value of ~$900 billion, but the digital asset ecosystem is so much more.”
Bank of America is bullish on Etheruem now and highlighted the potential for smart contract platforms just like Ethereum to power the array of services and functionality. The report continued:
“In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza.”
Bank of America cited huge figures like more than $17 billion worth of venture capital investments in digital assets and blockchain companies in the first half of 2021 compared to $5.5 billion in 2020. it cited the recent NFT market resurgence which saw top marketplace OpenSea log about $3 billion worth of trading volume every month in September and August. Bank of America however, suggested that the sky-high asking prices of NFTs are a main point of concern. The company is apparently perplexed by the popularity of derivative projects which are basically lists of text that can be used to form the basis of the game projects. The company wrote:
“Simple images like a black background with a few words of text make us concerned that there are heightened risks in this segment that need to be fully understood before NFTs can achieve true adoption.”
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