Franklin Templeton Analyzes Crypto Trend Beyond BTC, ETH, SOL

Franklin Templeton, the issuer of the recently launched Franklin Bitcoin ETF (EZBC), took to X to share some crypto market insights. The digital assets research team of the asset manager has a take on the current state and future of cryptocurrencies.

Franklin Templeton emphasized the significance of private blockchains. They described them as a ‘reinvention of intermediaries in the financial sector.’ This perspective suggests a shift in the traditional roles played by financial middlemen.

The investment company said in a post on X, “We believe as blockchains improve in fees and performance, the potential use cases that are unlocked grow exponentially. Improving the economics and experience for the end user cannot be overstated.”

Crypto ‘speculation is a feature’

The team also touched on the inherently speculative nature of cryptocurrencies, stating that speculation is not just an incidental aspect but a core feature of the crypto market.

“In crypto, speculation is a feature, not a bug,” they noted.

This suggests that speculation can drive much of the market in the crypto world, influencing both its volatility and investment appeal.

Meanwhile, a key focus was placed on Bitcoin and developments happening on top of the chain. Franklin Templeton’s research team paid particular attention to Ordinals and Bitcoin-based Layer 2 solutions. The team believes these advancements are crucial in addressing Bitcoin’s economic security issues and its utility as a store of value (SoV).

Notably, Bitcoin’s evolution is not just about price fluctuations. But the crypto community and researchers know it is also about its technological and functional improvements.

World beyond BTC, ETH, SOL

The asset manager also delved into the Solana blockchain, highlighting the vision of its founder, Anatoly Yakovenko. They praised Solana’s unique approach as a single atomic state machine, reducing information asymmetry. They also highlighted its vibrant ecosystem featuring decentralized finance (DeFi), meme coins, NFT innovation, and the Firedancer client.

Firedancer, designed as a third-party validator client software, targets enhancing the Solana blockchain’s performance.

Franklin Templeton also noted, “And we are impressed by all the activity seen on Solana in Q4 2023.”

Ethereum’s ecosystem also received attention from the issuer’s research team. with the team expressing optimism despite recent challenges. Franklin Templeton noted, “Despite the midlife crisis it’s recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward.”

They anticipate a bright future for ETH, which will be buoyed by the EIP 4844 “proto-danksharding” upgrade, alternative decentralized applications (Alt DA), community revitalization, and restaking.

Lastly, the team acknowledged the untapped potential of other Layer 1 (L1) networks beyond Bitcoin, Ethereum, and Solana. This means the issuer has a belief in the diverse future of blockchain, where multiple platforms can coexist and thrive.

Also Read: Franklin Templeton Excites Community With Bullish Post

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Shraddha’s professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.