Franklin Templeton Digital Assets Bullish on Runes to Help Bitcoin Close Gap with Ethereum and Solana
The launch of Runes is set to revolutionize the fungible digital asset space for Bitcoin, according to a new report by investment firm Franklin Templeton Digital Assets. The report, released on Monday, highlights how Runes will help Bitcoin “close the gap” with Ethereum and Solana in terms of market cap and efficiency.
Currently, Bitcoin’s fungible token market is significantly smaller compared to ETH and SOL. However, with the introduction of the more efficient token standard Runes, Bitcoin is poised to bridge the divide and compete more effectively with other blockchains.
Franklin Templeton, with $1.4 trillion in assets under management, expressed bullish sentiment towards Runes. Runestone spokesperson Leonidas commented on the firm’s optimism, suggesting that many investors will be drawn to this new development.
The report also addressed the drawbacks of the BRC-20 standard, noting that its burn and minting process leads to the creation of junk UTXO, which bloats the network and increases fees. This has contributed to a recent downturn in BRC-20 tokens, potentially due to the anticipation surrounding Runes.
According to blockchain intelligence company LunarCrush, the negative sentiment towards BRC-20 tokens could be attributed to the growing interest in Runes. The launch of the Runes protocol promises several improvements, including no junk UTXOs, enhanced privacy, and compatibility with the Bitcoin Lightning Network.
Franklin Templeton has been closely monitoring emerging digital assets, such as Ordinals, which have been driving innovation in the Bitcoin space. The firm sees a renaissance in Bitcoin activity, fueled by developments in NFTs, fungible tokens like BRC-20 and Runes, Layer 2 solutions, and DeFi primitives.
In a separate report, Franklin Templeton predicts that the total number of crypto users will exceed 1.2 billion by 2025, underscoring the growing mainstream adoption of digital assets.
As the crypto landscape continues to evolve, the launch of Runes represents a significant step forward for Bitcoin in the competitive world of fungible tokens.
