A major American asset manager sees a future in bitcoin ordinals. Franklin Templeton Digital Assets has released a publication titled ‘The Rise of Bitcoin Ordinals’. The gist: ordinals ensure more innovation within the bitcoin ecosystem. At the same time, we also warn about loss of value of these ‘bitcoin non-fungible tokens’.
The Rise of Bitcoin Ordinals pic.twitter.com/nKLwwlMM4d
— Franklin Templeton Digital Assets (@FTI_DA) April 3, 2024
Bitcoin Ordinals
Bitcoin Ordinals allow digital assets, similar to non-fungible tokens (NFTs), to be inscribed directly onto the Bitcoin blockchain. This is possible through the “Ordinals protocol”, which allows users to identify individual satoshis and assign unique information to them.
According to Franklin Templeton, there has been a “renaissance in activity” on the bitcoin network over the past year because of the Ordinals. The asset manager also mentions new fungible token standards such as BRC-20 and Runes, Bitcoin-based layer-2 networks and Bitcoin decentralized finance (DeFi), concepts that are driving bitcoin innovation. The report states, among other things:
“Bitcoin Ordinals have seen an increase in trading volume in recent months. Thus, there is an increase in dominance starting in December of 2023, when it surpassed ETH in trading volume.”
Furthermore, the asset manager emphasizes that various Bitcoin Ordinals collections define the NFT market in terms of trading volume and market capitalization. Examples include NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz and Bitmap.
The asset manager is not purely positive: they also warn that Ordinals can lose their value in a short time, and these assets are also not covered by the Federal Deposit Insurance Corporation insurance, as are bank deposits. In short, this young technology also has the necessary risks that you as a user must take into account.
Franklin Templeton
Franklin Templeton has introduced its investors to multiple submarkets. On March 14, there was even an investor note about memecoins. The company recognizes the potential of memecoins to generate quick profits, but also noted that they have “no intrinsic value.”
Franklin Templeton is also one of the providers of a bitcoin spot exchange-traded fund (ETF). The company has also entered the race for a spot Ether ETF. On February 12, the company filed an S-1 filing with the US Securities and Exchange Commission.
Source: https://bitcoinmagazine.nl/nieuws/ordinals-ontketenen-innovatiegolf-binnen-bitcoin-ecosysteem-volgens-franklin-templeton
