Franklin Templeton’s Move Towards Bitcoin NFTs and Rise in Bitcoin Ordinals
Franklin Templeton’s digital assets division has recently unveiled a note to its investors detailing the introduction of Bitcoin-based non-fungible tokens (NFTs), highlighting a significant surge in activities within the Bitcoin ecosystem. The asset manager attributes this heightened momentum to various factors, including the emergence of Bitcoin NFTs known as Ordinals, the development of new fungible standards like BRC-20 and Runes, the rise of Bitcoin Layer 2 (L2s) solutions, and the expansion of decentralized finance (DeFi) applications built on the Bitcoin network.
Bitcoin Ordinals Grab the Spotlight
Activity in the Bitcoin NFT space is on the rise, according to the latest report from the Bitcoin ETF issuer. In particular, Ordinals have witnessed a substantial increase in trading volume over the past few months, reflecting the growing interest in this sector. Bitcoin’s dominance in trading volume surpassed Ethereum in December 2023, showcasing its strong position in the market.
- Bitcoin Ordinals have emerged as dominant players in the NFT market, with collections like NodeMonkes, Runestone, and Bitcoin Puppets leading the way in terms of market capitalization and trading volume.
- NodeMonkes, Runestone, and Bitcoin Puppets boast market caps of $353 million, $339 million, and $168 million, respectively, making them key players in the Bitcoin NFT space.
- These collections have recorded significant trading volumes over the past 30 days, further solidifying their position in the market.
- Bitcoin Ordinals stand out from NFTs on other blockchains due to their unique feature of containing raw data directly on the Bitcoin blockchain, contributing to their appeal and growing popularity.
Franklin Templeton’s Influence in the ETF Market
Franklin Templeton, known for its involvement in the ETF market, was among the issuers that launched a spot BTC ETF in the United States earlier this year. With its ETF trading under the ticker name “EZBC,” the asset manager has witnessed total inflows of 281.8 million since its launch, highlighting its success in the ETF space.
- Despite its zero-fee structure, Franklin Templeton’s ETF has shown significant differences in flows compared to other key players in the ETF market like Blackrock (IBIT) and Fidelity (FBTC), emphasizing its unique positioning.
Binance’s Decision to Cease Support for BTC NFTs
In a recent blog post, cryptocurrency exchange Binance announced its intention to discontinue support for Bitcoin-based NFTs on its platform, signaling a shift away from these assets. Less than a year after their introduction, Binance will no longer offer airdrops, benefits, or utilities associated with BTC NFTs, aiming to streamline its product offerings in the NFT space.
- Users who own Bitcoin NFTs on the Binance marketplace are advised to withdraw them via the Bitcoin network before May 18, 2024, to avoid any disruptions in their holdings.
- Effective April 18, 2024, users will no longer be able to engage in activities like purchasing, depositing, bidding, or listing NFTs via the BTC network on the Binance NFT Marketplace, marking a significant change in the platform’s offerings.
Currently, BTC is trading at $68,300, registering a modest 3% increase in the last 24 hours and edging closer to the crucial $70,000 milestone. This level has posed a challenge for the cryptocurrency in previous attempts to sustain its value in the market.
Hot Take: Embracing Bitcoin NFTs and Industry Shifts
As the crypto landscape continues to evolve, with Franklin Templeton embracing Bitcoin NFTs and Binance making changes to its NFT support, it’s evident that the industry is undergoing significant transformations. The rise of Bitcoin Ordinals, the growth of NFT collections, and the impact of ETF offerings are shaping the future of digital assets, presenting both challenges and opportunities for investors and market participants alike.
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