This week, Bank of America (BoA) published a favorable crypto report detailing its analysis of the sector.
It states that cryptocurrency has become too large to ignore, adding that, despite the phenomenal growth seen to date, the industry is still “only in the first inning.”
As the second-largest bank in America by total assets, the significance of this report cannot be overstated.
BoA states cryptocurrency has a bright future
The report talks about an evolving landscape that has matured beyond Bitcoin’s store of value use case. On that, they foresee blockchain technology significantly transforming existing market structures.
“We anticipate significant growth as digital asset use cases move beyond bitcoin‘s store of value thesis to an industry characterized by product innovation, regulatory clarity, increased institutional participation and mainstream adoption.“
However, as a result of this, governments and regulators have started to pay more attention.
Recently, several prominent figures, including Coinbase’s Brian Armstrong, have come forward to voice their dissatisfaction with the lack of regulatory clarity, and some would add, unfair treatment at the hands of regulators.
A recent comment from JPMorgan CEO Jamie Dimon, in which he said, “Regulators are going to regulate the hell out of it,” leads many to think it’s game over for digital assets.
But, BoA has a more sympathetic take on regulation as it applies to cryptocurrency. They state that digital assets are complementary to, not competitive against, fiat currency.
The report goes on to state that clearer regulation will only accelerate adoption.
“Despite increased volatility as regulatory frameworks appear, clearer rules for digital assets and their applications may accelerate adoption.“
NFTs are one to watch
As well as detailing the influence of Bitcoin on the digital currency sector, the report also mentioned the role of alts, particularly how dApps and NFTs are a significant force in driving market structure change.
This was noted by BoA, who pointed out that August’s NFT sales were greater than for the whole of 2020.
“NFT sales were $3bn+ in August, up from $250mn in all of 2020, led by demand from celebrities, corporations and individuals.”
The mind boggles at what monthly NFT sales might hit during the second inning.
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