Bank of America Estimated the Perspectives for DeFi and NFT
BofA Securities, a subsidiary of Bank of America (BoA) corporation, released a report on Monday offering a detailed assessment of the digital asset sector, in particular the innovations taking place in the decentralized finance (DeFi) and non-financial token (NFT) sectors.
The $2.15 trillion market capitalization of the cryptocurrency sector is too large to ignore, analysts said. Moreover, the digital asset ecosystem has evolved greatly to encompass much more than just Bitcoin (BTC).
According to the report, the digital asset sector today consists of:
– tokens that act like operating systems
– decentralized applications (DApps) without intermediaries
– stablecoins pegged to fiat currencies
– digital currencies of central banks (CBDC) to replace national currencies
– non-fungible tokens (NFT) allowing communication between creators and fans.
“Digital assets are not just payments, but evidence of a new computer paradigm – a programmable computer that is available everywhere and to everyone and belongs to millions of people around the world,” the company said.
As of June 2021, 221 million users worldwide were trading the cryptocurrency or using a blockchain application. By comparison, in May 2020, the number of users of crypto products was only 66 million.
Regarding NFT, BoA says the sector’s skyrocketing growth is surprising even to experienced crypto users, highlighting that the OpenSea market brought in over $2.5 billion in the first half of 2021. However, this market is still very volatile.