The Bank of America Corporation (BoA) has published a research report offer a bullish outlook for the long-term prospects of cryptocurrency.

The report, published on Monday by BoA subsidiary, BofA Securities, offers a nuanced appraisement of the digital asset sector that highlights innovation taking place within the decentralized finance (DeFi) and nonfungible token (NFT) sectors.

The report asserts that the cryptocurrency sector'due south $2.15-trillion market capitalization is "likewise large to ignore," highlighting that the digital asset ecosystem has evolved to embrace "so much more" than just Bitcoin (BTC).

The report characterizes the sector equally comprising "tokens that act similar operating systems, decentralized applications (DApps) without middlemen, stablecoins pegged to fiat currencies, fundamental bank digital currencies (CBDCs) to replace national currencies, and non-fungible tokens (NFTs) enabling connections between creators and fans," adding:

"For us, digital assets are not about payments per se. They're near a new computing prototype – a programmable reckoner that is accessible everywhere and to anyone and owned by millions of people globally."

The BofA written report noted that venture capital in the crypto and blockchain sector has dramatically increased in 2022, noting that the more than $17 billion invested into the industry during the kickoff half of this year is more than than triple the $v.5 billion injected into the sector over the entirety of 2022.

The study likewise highlighted the recent surging rates of crypto adoption, estimating that 221 million users globally had traded cryptocurrency or used a blockchain application as of June 2022 — compared to 66 million in May 2022.

"The applications built on this new software architecture appear to be growing more speedily than past technologies. [...] Anyone in a network tin establish a process (application or project) that provides consistency and trust," the study read.

Related: Morgan Stanley launches cryptocurrency enquiry squad

Looking at NFTs, BoA states that the booming growth of the sector even defenseless veteran crypto users by surprise, highlighting that the OpenSea marketplace generated more than than $2.5 billion in the showtime half of 2022.

Nonetheless, the report warned of the volatility associated with the nascent NFT sector, stating that "heightened risks in this segment [...] demand to be fully understood before NFTs can achieve true adoption."