In a new report released on Monday, investment firm Franklin Templeton Digital Assets says the launch of Loon will help Bitcoin “bridge the gap” with Ethereum and Solana in the fungible digital asset space. He said he was deaf.
“Currently, the Bitcoin alternative token market is very small compared to ETH and SOL,” the investment firm said. “However, with the introduction of a more efficient token standard (Rune), Bitcoin is well-positioned to close the gap between its fungible market capitalization and that of other blockchains.”
“1.4 trillion [assets under management]Franklin Templeton is bullish on Runes, and I know that for some reason most of you will take this halfway,” Runestone spokesperson Leonidas said in response to the company's tweet. Ta.
While Franklin Templeton's report acknowledges the role the BRC-20 standard has played in popularizing Bitcoin alternative tokens, the company notes that the standard's writing and minting process creates a large amount of junk UTXO, or unused Said transaction output (UTXO) is generated.
UTXOs bloat the network with Bitcoin fragments left behind after transactions, increasing fees. Unspent funds will eventually be used for new trades.
With Bitcoin's halving just days away, BRC-20 tokens have fallen sharply in recent weeks, with First Oldi (ORDI) down 40% in the past seven days.BRC-20 token slump may be linked to Runes, according to blockchain intelligence firm Lunar Crash.
“People may be becoming more bullish on Loon, meaning there is less positive sentiment on BRC-20 relative to actual negative sentiment.” said LunarCrush co-founder and CEO. Joe Bezzani Said Decrypt.
Franklin Templeton Digital Assets says the launch of the Runes protocol eliminates the need for junk UTXOs, eliminates the need to rely on off-chain data, eliminates the need for additional tokens, improves privacy and compatibility with Bitcoin, and more. He pointed out that many improvements would be made. lightning network.
Runes aren't the only new digital asset that caught Franklin Templeton's attention. Earlier this month, the company praised Ordinals for driving a “renaissance in BTC activity,” highlighting NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz, and Bitmap, which have a combined market cap of $1.11 billion.
Franklin Templeton Digital Assets previously stated that “the past year has seen a resurgence in Bitcoin innovation and development activity.” “The positive momentum in innovation will primarily be driven through Bitcoin NFTs known as Ordinals, the launch of new alternative tokens such as BRC-20 and Runes, Bitcoin Layer 2, and other Bitcoin DeFi primitives.”
In a separate report released on Monday, Franklin Templeton said the total number of crypto users will exceed 1.2 billion by 2025.
Franklin Templeton Digital Assets did not immediately respond. Decryption Request for comments.
Edited by Ryan Ozawa.
