According to U.Today, Franklin Templeton, a global asset management firm with over $1.65 trillion in assets under management (AUM), has expressed a bullish stance on Ethereum (ETH) as a technological development and economic tool. Despite fierce competition, Ethereum continues to be the cornerstone of the decentralized economy, consistently presenting new opportunities for its community.
In its report titled 'Understanding the Value of The Ethereum Network', Franklin Templeton highlighted the significant features, challenges, and opportunities of the Ethereum blockchain. The investment giant's analysts emphasized that Ethereum has built upon Bitcoin’s achievements to establish a robust and accessible technological foundation for distributed ledger applications, thereby facilitating a comprehensive decentralized economy.
The advent of the Ethereum Virtual Machine (EVM) and its Solidity smart contracts has altered the landscape of app development. Ethereum has become the basis for a broad array of decentralized applications across various B2B and B2C segments. The report specifically underscored the role of Layer 2 networks in enhancing Ethereum's performance metrics and decentralization status.
Layer 1 and Layer 2 blockchains collectively form the basis for 'Web3', the latest version of the World Wide Web that allows user ownership. Emerging Web3 business models are laying the groundwork for a new kind of network economy and commercial transaction approach, fostering a protocol-based economy that promotes democratized ownership and rewards participation.
Consequently, Ethereum has succeeded in creating a vibrant, diversified protocol economy with a wide range of innovative use cases in DeFi, GameFi, NFT, metaverse, and other trending sectors.
The report's authors concluded that Ethereum stands out as a unique blend of a native peer-to-peer payment network, a common developer toolkit, and a virtual machine for executing smart contracts, setting a new standard for blockchain technology.
Franklin Templeton is also part of the race for Ethereum spot ETFs in the U.S., having filed with the SEC for ETF approval in February 2024. Major analysts and community members anticipate that Ethereum spot ETFs will be approved as early as this month. The final approval of S-1 forms is expected by July 12, potentially indicating an ETF trading launch on July 15.