Bank of America Bullish on NFTs and DeFi Despite Recent Slump

One of the biggest banking institutions of the globe Bank of America (BoA) has published a research report that offers an outlook into the long-term prospects of NFTs, DeFi and cryptocurrencies. The report shows that the bank’s analysts are bullish about the outlook of both DeFi and NFTs. 

 

NFTs and DeFi Platforms Continue to Post Great Growth

Both the Non Fungible Token (NFT) and the Decentralized Finance (DeFi) sectors have enjoyed record growth during the current calendar year. The DeFi sector has especially been largely bullish in the long-term for the last year and a half. However, after the crypto price tank earlier this year in May also negatively impacted both DeFi and NFT sectors. While NFTs have been able to recover well enough from the slump, the DeFi projects have been slow to respond overall.

 

Bank of America Heaps Praise on the Digital Economy

The report published by BoA’s subsidiary Bank of America Securities heaped well thought out praise on the growing digital economy and its different facets including NFT and DeFi sectors. The report also says that the mammoth $2.15 trillion valuation of the industry is just too big to ignore. It also stated that while the movement started with Bitcoin itself, it has since branched out to become much more than just a digital currency. According to the publication, more than 221 million users currently own cryptocurrencies or digital assets and the number is seeing exponential growth. 

The bank also singled out the possibility of Decentralized Apps (DApps) and its immense potential for the future. 

The report states:

“For us, digital assets are not about payments per se. They’re about a new computing paradigm – a programmable computer that is accessible everywhere and to anyone and owned by millions of people globally.

 

Clearly the report is talking about networks like Ethereum and to some extent its competitors like Cardano and others. The bank however, did warn against the volatile side of these digital assets especially NFTs.

The programmable side of the blockchain networks is what fascinates many legacy bankings institutions as it is a utility that many of them find attractive and in place for a digital world of tomorrow. Many of these banks are silently betting big on new crypto/NFT/DeFi platforms. 

 

Image Source: GettyImages

Talha Dar

Talha Dar

Cryptocurrency and blockchain enthusiast. Working on free economy and borderless solution side of things. Live and breathe crypto!

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