The Bank of America (BofA) has published a research report outlining the current and prospective state of the cryptocurrency industry, which now holds more market value than the GDP of Italy and Canada. The report is the first cryptocurrency publication by the bank since the creation of its crypto research team back in July. Financial institutions have shown an increased interest in the crypto market in the last few years.
Bank of America highlighted how significant the crypto market has become.
In the research report, Bank of America highlighted how significant the crypto market has become. An industry with a market valuation of over $2 trillion and more than 200 million global users “is too large to be ignored,” the bank noted. The bank also said the crypto ecosystem is currently less more about Bitcoin. There are now tokens that act like operating systems, decentralized applications (DApps), stablecoins, central bank digital currencies (CBDCs), and non-fungible tokens (NFTs). Bank of America also mentioned the increased investments in the cryptocurrency market.
“We expect further value creation as bitcoin is increasingly adopted.”
Venture Capital investments in cryptocurrencies have risen by nearly 210%, from the $5.5 billion last year to the current record of $17 billion in H1 this year. “Our view is that there could be more opportunity than skeptics expect.” Regarding decentralized applications, Bank of America stated that it’s possible for 1.7 billion unbanked globally to gain access to financial services with their smartphones. “We expect further value creation as bitcoin is increasingly adopted, alternative coins/tokens enable new applications, and a pipeline of Venture Capital-backed private companies reach public markets.”