Crypto-powered and crypto-based industries have seen a major global explosion that “makes space too big to ignore,” according to a Bank of America (BofA) report earlier this week. The report has put together a detailed data analysis of the current bloom phase of blockchain technology that underpins the crypto space. In addition, the report highlighted that the BofA is open to dig deeper into the crypto space and look beyond Bitcoin, the cryptocurrency, to the world.
While Bitcoin is recognized as important, research claims massive institutional investors have invested $17 billion (about INR 127.055 billion) in the decentralized financial ecosystem (DeFi) regulated by banks and national or international administration.
BofA put special emphasis on a prediction that says how use of blockchain technology could change in the near future and strengthen many industries. Blockchain eliminates the requirement of central authority to oversee financial transactions and grants users autonomy over their assets and transactions.
According to the study, nearly 221 million people have been trading cryptocurrencies lately, indicating steady growth in the sector.
Crypto mergers and acquisitions also shot up from $940 million in 2020 to $4.2 billion in 2021 (NFTs), which are digital assets that represent, among other unique items, art, music, game items, and videos that can be purchased as collectibles using cryptocurrencies. However, the report cautioned NFT investors to take a deep look at all the financial risks identified by investing in high quality NFT parts.
BofA released this report just days after Jerome Powell, chairman of the US Federal Reserve, said the central bank had no intention of banning the cryptocurrency sector. The US Federal Reserve is also known for creating an official digital dollar, according to a report by FullyCrypto, Europe.
In recent studies, market research company Chainalysis found that the cryptocurrency market grew by 706 percent in two regions and reached a valuation of 572.5 billion US dollars (approx. 42.62.844 billion rupees) in two regions: Central Asia and South and Oceania (CSAO) between July 2020 and June 2021.
The region of Central, North and West Europe has more than 1 trillion US dollars (approx. 74.46.016 rupees) in transactions in the same period of time worldwide largest crypto economy developed.
