Franklin Templeton Predicts Bitcoin’s Runes Token Standard Will Revolutionize DeFi
The upcoming launch of Bitcoin’s “Runes” token standard is set to revolutionize the world of decentralized finance (DeFi), according to a report by asset manager Franklin Templeton. The new token standard, set to go live alongside the Bitcoin halving, will allow Bitcoin to catch up to its rivals in the DeFi space.
Tokens are blockchain-based assets that differ from the native currency of the blockchain. Until recently, Bitcoin lacked the ability to mint tokens on its main blockchain, limiting its potential for applications like NFTs, stablecoins, and DeFi. However, with the introduction of Ordinals in 2023, users were able to create NFTs on Bitcoin’s blockchain.
Now, with the introduction of Runes, created by Casey Rordamor, Bitcoin is poised to become a major player in the DeFi market. Runes are designed to be more efficient than previous token standards, requiring less blockchain-based data to operate. This efficiency, along with compatibility with the lightning network and increased transaction privacy, could help Bitcoin close the gap between its market cap and that of other blockchains.
Franklin Templeton predicts that Runes could have a significant impact on Bitcoin’s fungible token and DeFi market, similar to the effect Ordinals had on the NFT market. With Bitcoin’s total market cap at $1.2 trillion and its fungible token cap at just $600 million, there is significant room for growth in this area.
As the launch of Runes approaches, the crypto community is eagerly anticipating the potential for Bitcoin to become a major player in the DeFi space. Stay tuned for updates on this exciting development.
