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 to 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 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.
