Ordinals generate positive momentum in Bitcoin innovation. Franklin Templeton stated:
The asset manager detailed the potential of Ordinals but also emphasized that they are uninsured and susceptible to value loss.
The digital assets division of asset manager Franklin Templeton announced Bitcoin-based nonfungible tokens (NFTs) in a concise investor note.
According to Franklin Templeton Digital Assets, the Bitcoin Ordinals protocol was predominantly responsible for improving Bitcoin’s innovative momentum.
Due to Ordinals, Bitcoin has experienced a “renaissance in activity” over the past year, according to the asset manager.
The Rise of Bitcoin Ordinals pic.twitter.com/nKLwwlMM4d
— Franklin Templeton Digital Assets (@FTI_DA) April 3, 2024
In addition, the asset manager cited Bitcoin decentralized finance (DeFi) primitives, Bitcoin-based layer-2 networks, and new fungible token standards such as BRC-20 and Runes as factors propelling Bitcoin innovation.
Additionally, the asset manager acknowledged the escalating activity in the Bitcoin NFT space. Franklin Templeton highlighted the escalating prevalence of Bitcoin across the entire NFT ecosystem. The business wrote:
The trading volume of Bitcoin Ordinals has increased significantly over the last few months. The growing dominance of Bitcoin Ordinals became evident in December 2023 when its trading volume surpassed that of ETH.
The asset manager also highlighted a number of Bitcoin Ordinals collections that have started to “dominate” the NFT space in terms of trading volume and market capitalization. NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz, and Bitmap were among these.
Despite the asset manager’s apparent optimism regarding Ordinals, the note also emphasized that these assets are not bank guaranteed and are susceptible to value depreciation.
COMPLETE BITCOIN HALFING COVERAGE RIGHT HERE
Additionally, Franklin Templeton noted that the Federal Deposit Insurance Corporation does not insure Ordinals’ assets.
“All investments involve risks, including the potential loss of capital,” the asset manager further emphasized to the investors. According to the firm’s writing, digital assets are susceptible to risks due to their “immature” and swiftly evolving technology, as well as their inherent vulnerabilities.
Franklin Templeton has been acquainting its investors with a variety of cryptographic segments. The company reached “full degen” on March 14 when it issued an investor note concerning memecoins.
While acknowledging the potential for memecoins to generate immediate profits, the organization also stated that they possessed “no inherent value.”
According to historical statistics, the projected price objective for Bitcoin in 2028 is $435,000.
Earlier this year, Franklin Templeton was among the exchange-traded fund (ETF) issuers that introduced a spot Bitcoin ETF in the United States.
Additionally, the company has entered the competition for a position in the Ether ETH $3,356 ETF. The organization filed Form S-1 with the U.S. Securities and Exchange Commission on February 12.
