Franklin Templeton: What else should we pay attention to besides BTC, ETH and SOL?

Author: Shraddha Sharma, Coingape; Compiled by: Songxue, Golden Finance

Franklin Templeton, the issuer of the recently launched Franklin Bitcoin ETF (EZBC), shared some on X Cryptocurrency Market Insights. The asset manager’s digital asset research team has its own take on the current state and future of cryptocurrencies.

Franklin Templeton emphasizes the importance of private blockchains. They describe it as "an opportunity to reinvent intermediaries in the financial sector." This view points to a shift in the traditional role played by financial intermediaries.

The investment firm said in a post on The economic benefits and experience for users cannot be overstated."

"Speculation" is an aspect of cryptocurrency Features

The team also addressed the inherently speculative nature of cryptocurrencies, noting thatspeculation is not just an incidental aspect but a core feature of the cryptocurrency market.

“In cryptocurrencies, speculation is a feature, not a bug,” they note.

This shows that speculation can drive much of the market in the crypto world, affecting its volatility and investment attractiveness.

In the meantime, focus on developments happening in Bitcoin and on the chain. Franklin Templeton’s research team is particularly focused on Ordinals and Bitcoin-based Layer 2 solutions. The team believes thatthese advances are critical to solving Bitcoin’s economic security concerns and its utility as a store of value (SoV).

It is worth noting that Bitcoin’s evolution is about more than just price fluctuations. But the crypto community and researchers know that it’s also about improvements in technology and functionality.

The world beyond BTC, ETH, SOL

The asset manager also delved into the Solana District Blockchain, underlines the vision of its founder Anatoly Yakovenko. They praise Solana’s unique approach as a single-atom state machine that reduces information asymmetry. They also highlighted its vibrant ecosystem, including decentralized finance(DeFi), meme coins, NFT innovations and the Firedancer client.

Firedancer is designed as a third-party validator client software designed to enhance the performance of the Solana blockchain.

Franklin Templeton also noted: “We have been impressed by all the activity that occurred on Solana in the fourth quarter of 2023.”

The Ethereum ecosystem has also been affected by attracted the attention of the issuer’s research team. Despite recent challenges, the team remains optimistic. Franklin Templeton noted that “despite the recent midlife crisis, we see a bright future with many strong drivers pushing the Ethereum ecosystem forward.”

They expectETH has a bright future, buoyed by the EIP 4844 “proto-danksharding” upgrade, alternative decentralized applications (Alt DA), community revitalization, and restaking.

Finally, the team acknowledges the untapped potential of other Layer 1 networks besides Bitcoin, Ethereum, and Solana. This means issuers are confident in the diverse future of blockchain, where multiple platforms can coexist and thrive.