Bitcoin’s recent drop to $70,800 has triggered swift sell-offs in the U.S. market, leading altcoins to struggle once more. If market closures remain below $71,500, traders may grow increasingly risk-averse, potentially exacerbating the downward trend. However, a significant development in the crypto world offers a glimmer of hope.
What is Franklin Templeton’s Next Move?
Franklin Templeton, a major player in asset management, has expanded its portfolio by introducing tokenized bonds on a layer 2 network. The firm has made the RWA asset FOBXX available on Coinbase’s Base network, which is the sixth blockchain in its series and also operates on platforms like Arbitrum and Polygon.
How Does the Base Network Perform?
According to Anthony Bassili, Coinbase’s head of tokenization, this launch positions Franklin Templeton as the first significant asset manager to engage with Base, setting a precedent for investor expectations. The fund, originally launched on Ethereum, has amassed $410 million, driven by increasing market interest.
The Base network, introduced by Coinbase in 2022, aims to diversify revenue streams for the exchange. Its success is notable, with Total Value Locked (TVL) reaching over $8 billion, ranking just behind Arbitrum. Active user engagement on Base is also surging, with transaction volumes increasing by 55% last quarter compared to earlier this year.
- Franklin Templeton’s bond offering on Base marks a significant milestone for the crypto market.
- The fund’s rapid growth reflects increasing institutional interest in digital assets.
- Base network’s performance suggests a competitive edge in the layer 2 space.
Despite these advancements, short-term market fluctuations remain challenging. Bitcoin has dipped further to $70,624, casting a shadow over altcoins and highlighting the volatility inherent in the cryptocurrency market.
