Bitcoin ETF Issuer Franklin Templeton Bullish On Solana (SOL), Foresees It As 3rd Largest Crypto
May 07 2024 - 10:30PM
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In the wake of the November 2022 crypto market crash, which saw the
bankruptcy and collapse of FTX and other firms, Solana (SOL) has
emerged as a standout performer, experiencing a year-to-date price
increase of over 560%. With a market capitalization of $67
billion, Solana has secured its place as the fifth largest
cryptocurrency, trailing only Bitcoin (BTC), Ethereum (ETH),
Binance Coin (BNB), and Tether’s USDT stablecoin. Despite its
substantial growth, asset management giant and Bitcoin
exchange-traded fund (ETF) issuer Franklin Templeton anticipates
further expansion for Solana as the emerging bull market takes
shape. Solana Poised For Continued Growth A recent report
released by the firm highlights Solana’s strong position to capture
the next wave of crypto adoption, solidifying itself as a major
crypto asset alongside Bitcoin and Ethereum. Related Reading:
Here’s How This Ethereum Whale Made $16 Million From A Single Trade
The report emphasizes that Solana’s growth will continue due to
several key factors. Notably, the crypto industry witnessed
accelerated activity during Q4 2023, with Solana as a focal point
for major airdrops within its ecosystem, such as Jito and
Pyth. According to the report, these airdrops generated a
wealth effect of over a billion dollars, driving up the value of
SOL and other Solana ecosystem tokens, particularly meme coins.
This surge occurred concurrently with Bitcoin’s upward trend,
providing additional momentum to the Solana ecosystem. Since then,
meme coins have gained significant attention, with a substantial
portion of activity occurring on Solana. The network has witnessed
the creation and trading of numerous meme coins, with some
attaining multi-billion-dollar market caps, including Bonk (BONK)
and Dogwifhat (WIF). The Crypto Industry’s Next Big Breakthrough?
According to the asset manager, Solana has demonstrated significant
growth over the past year, which is evident in the network’s
increased total fees and decentralized exchange (DEX) volumes. The
network’s low fees, transaction latency, and high data throughput
relative to other networks have contributed to its success.
Solana’s network effects are expected to strengthen further as its
performance improves, positioning it to capture upcoming trends in
the crypto space. Related Reading: Bloomberg’s Mike McGlone Reveals
Why A $150,000 Bitcoin Price Target Is Far Off The future remains
uncertain as crypto enthusiasts ponder the next big thing in the
industry. However, Franklin Templeton suggests that there is a
strong possibility that Solana could play a pivotal role.
According to the report, the Solana ecosystem anticipates
additional airdrops in the coming months, which will continue to
enhance the ecosystem’s wealth effect. Moreover, meme coin
activity shows no signs of slowing down on the Solana network,
further adding to the bullish sentiment surrounding the
cryptocurrency and its ecosystem. SOL is now attempting to
consolidate above the $150 level and has seen a significant 21%
increase in the last seven days alone. Featured image from
Shutterstock, chart from TradingView.com
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