Quick overview

---

Bank of America made a bold prediction that within the next ten years, nearly 99 percent of over 26,000 cryptocurrency tokens currently in use will go extinct. Today’s financial systems mainly rely on outdated, centralized infrastructures that are inefficient and lack interoperability, according to the report shared by cryptocurrency researcher SMQKE.

It also emphasizes the long-term effects of the evolving financial infrastructure and the anticipated role of tokenization in transforming traditional finance and blockchain applications. Emerging technologies like tokenization pose a growing threat to these systems, many of which have been around for over 20 years.

 

BofA Global Research forecasts a shift over the next 15 years as tokenization becomes more embedded in both the financial and non-financial sectors.

The report clearly distinguishes between traditional crypto tokens and tokenized assets. Tokenized assets are digital representations of real value that can be securely exchanged within regulated, permissioned systems. Conversely, many current cryptocurrency tokens are considered unnecessary or redundant, mainly used for experimentation or speculation. The report suggests that most of these tokens are unlikely to survive as the market consolidates because they offer little long-term utility.

The analysis indicates that only a few crypto tokens will persist if they have institutional backing, practical use, and widespread adoption. Although the report doesn’t specify which tokens will survive, it implies that only a small number of projects with strong foundations will be relevant in the future.

This outlook aligns with the broader trend of financial institutions exploring blockchain’s potential while remaining cautious about its volatility and decentralization..