Asset manager Franklin Templeton’s digital assets division published a note to its investors briefly introducing Bitcoin-based nonfungible tokens (NFTs).
Franklin Templeton Digital Assets said that the Bitcoin Ordinals protocol primarily drove positive momentum in innovation within Bitcoin.
The asset manager said there has been a “renaissance in activity” on Bitcoin in the past year because of Ordinals.
Source: Franklin Templeton
The asset manager also mentioned new fungible token standards like BRC-20 and Runes, Bitcoin-based layer-2 networks and Bitcoin decentralized finance (DeFi) primitives as contributors to driving Bitcoin innovation.
The asset manager also recognized that activities within the Bitcoin NFT space are accelerating. Franklin Templeton pointed out the increase in dominance for Bitcoin within the entire NFT ecosystem. The company wrote:
“Bitcoin Ordinals have seen a surge in trading volume over the past several months. This is reflected in an increase in dominance starting in December of 2023 when it surpassed ETH in trading volume.”
Furthermore, the asset manager highlighted several Bitcoin Ordinals collections starting to “dominate” the NFT space in trading volume and market capitalization. This included NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz and Bitmap.
30-day NFT sales volume by blockchain. Source: CryptoSlam
While the asset manager seemed optimistic about Ordinals, it also highlighted in the note that these assets may lose value and have no bank guarantee.
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Franklin Templeton also noted that Ordinals assets are not insured by the Federal Deposit Insurance Corporation.
In addition, the asset manager reminded its investors that “all investments involve risks, including the loss of capital.” The firm wrote that digital assets are subject to risks because of their “immature” and rapidly developing technology and their vulnerabilities.
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