Ordinals have promise, but the asset manager also pointed out that they are not insured and may lose value. The digital assets business of asset management Franklin Templeton sent a brief statement. Its investors outlining nonfungible tokens (NFTs) based on Bitcoin.
According to Franklin Templeton Digital Assets, the main driver of positive momentum in Bitcoin innovation was the Bitcoin Ordinals protocol.
Because of Ordinals. The asset manager claimed that there has been a “renaissance in activity” on Bitcoin during the past year.
The Rise of Bitcoin Ordinals pic.twitter.com/nKLwwlMM4d
— Franklin Templeton Digital Assets (@FTI_DA) April 3, 2024
The asset management also listed the following as factors influencing Bitcoin innovation: layer-2 networks built on Bitcoin, new fungible token standards like BRC-20 and Runes, and Bitcoin decentralized finance (DeFi) primitives.
The asset manager also noticed an acceleration of activity in the Bitcoin NFT market. Franklin Templeton drew attention to the growing prominence of Bitcoin within the NFT ecosystem. The business wrote:
The trading volume of Bitcoin Ordinals has increased during the last few months. This is demonstrated by a rise in dominance that began in December 2023 when its trading volume overtook ETH.
The asset manager also pointed out a few Bitcoin Ordinals collections that are beginning to “dominate” the NFT space in terms of market capitalization and trading volume. Bitmap, Ordinal Maxi Biz, Runestone, Bitcoin Puppets, and NodeMonkes were among them.
30-day NFT sales volume by blockchain. Source: CryptoSlam
Franklin Templeton highlights risks in Ordinals, stressing lack of bank guarantees and potential value loss. They caution investors on the inherent risks of digital assets due to their technology’s immaturity and volatility. Despite acknowledging the profit potential of memecoins, the company emphasizes their lack of inherent value. Franklin Templeton ventures into cryptocurrency areas, including Bitcoin and Ether, with the introduction of spot ETFs and participation in the competition for an Ether slot ETF. Their initiatives underscore their commitment to cryptocurrency investment despite the associated risks.
