The Bank of America has proposed the consolidation of cryptocurrencies and stated that cryptoassets in the digital market are too much.
The bank made this proposal amid the crash of digital currencies.
Jason Kupferberg, an analyst at the bank, said the cryptocurrency market’s saturation is similar to the internet stocks of 2000, when the dot-com boom triggered the emergence of many internet companies.
He said when the chips were down, only a few internet-related companies achieved success. He expects the same for the cryptocurrency market which has around 19,800 cryptoassets floating in the air for investors to select.
While talking to CNBC recently, Kupferberg said: “The reality is that there are too many crypto exchanges, there are too many cryptocurrencies and tokens. There’s going to need to be some sort of consolidation.”
The cryptocurrency market is already witnessing investors losing interest in hiding their funds within the cryptoassets, as the total investment value of the digital currency market is down -12.47% to $971.52 billion, having earlier enjoyed a position above $1 trillion market capitalisation.
The dip in the market cap was induced by the crash in bitcoin, which depreciated by -14.72% recently and currently trading at $23,561.87 per BTC, with a market cap of $449.24 billion.
SUPPORT NIGERIAN CANADIAN NEWS
If you like our work and want to keep enjoying what we offer, kindly support us by donating to the Nigerian Canadian News through the button below.
