Franklin Templeton bullish on Ethereum, Solana and other layer 1 networks

Spot Bitcoin ETFs have entered their fifth trading day, and it appears that the institutional hype is just beginning. Franklin Templeton, one of the world’s largest asset managers, expressed optimism about the future of Ethereum, Solana, and other layer 1 chains in a series of tweets posted yesterday.

Franklin Templeton acknowledged Ethereum’s challenges but remains bullish about its future. The firm cited four key factors contributing to Ethereum’s promise: the upcoming Ethereum Improvement Proposal (EIP) 4844, alternative data availability (Alt DA), community revitalization efforts, and re-staking mechanisms. 

We are excited about ETH and its ecosystem. Despite the midlife crisis it's recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward
-EIP 4844
-Alt DA
-Community Revitalization
-Restaking

— Franklin Templeton (@FTI_US) January 17, 2024

The company is also interested in the vision of Anatoly Yakovenko, Solana’s co-founder. Significant developments in Solana’s ecosystem, particularly in the fourth quarter of 2023, caught the firm’s attention. These include advancements in decentralized prediction market initiatives (DePIN), decentralized finance (DeFi), the proliferation of meme coins, NFT innovation, and the introduction of Solana’s scaling solution, Firedancer.

Beyond Bitcoin, Ethereum, and Solana, the firm sees potential in other layer 1 networks. Franklin Templeton said it would actively support, monitor, and develop these networks as they grow and mature.

Ordinals and layer 2 Bitcoin protocols also stand out in these tweets. The firm highlights their capacity to address Bitcoin’s economic security challenges and elevate its Store of Value (SoV) role.

Franklin Templeton highlights improvements in blockchain technology, including reduced fees and enhanced performance. The company believes that these technological advancements are key to unlocking new use cases and improving blockchain’s economics and user experience.

Franklin Templeton has around $1,4 trillion in assets under management as of December 31, 2023. 

Before the launch of Franklin Bitcoin ETF, the company joined BTIG and Broadhaven Ventures to back Receipts Depositary Corporation (RDC), a startup that plans to launch the first-ever Bitcoin Depositary Receipts.