Franklin Templeton, a major asset management giant in the United States, pointed out today that Solana’s growth expectations will continue, consolidating its position as the third-largest cryptocurrency asset after BTC and ETH. It believes that Solana has strong technical capabilities and is expected to lead the adoption in areas such as DePIN, payments, and CLOB.
Solana’s network has benefited from the outstanding performance of its token SOL, as well as the continuous meme frenzy, airdrops, and Ore mining incentives, making it one of the most prominent public chains and currently ranking as the fifth-largest cryptocurrency by market capitalization.
Franklin Templeton predicts that Solana’s growth will continue. Today, the asset management giant tweeted that Solana has demonstrated its resilience and dominance in the crypto space from last year until now, positioning it as the network to lead the next wave of crypto adoption. Therefore, its growth is likely to continue, consolidating its position as the third-largest cryptocurrency asset after BTC and ETH.
Looking back at its performance, the report mentioned that cryptocurrency activities on Solana have accelerated since the fourth quarter of 2023, especially due to significant airdrops that occurred within the Solana ecosystem at that time, creating a wealth effect of over $1 billion and driving the increase in SOL and other Solana ecosystem tokens, particularly meme coins.
Meme coins have gained widespread attention since then, with a significant portion of their issuance and trading happening on Solana, some even reaching market values of billions of dollars, such as Bonk (BONK) and Dogwifhat (WIF). This has led to a significant increase in total fees and DEX trading volume on the Solana network.
Solana is most likely to bring the next wave of adoption. Franklin Templeton expects that the next major event in the cryptocurrency field will likely happen on Solana. The institution points out that Solana has strong technical capabilities, particularly suitable for the areas it deems most potential to lead the next wave of adoption, including DePIN (decentralized physical infrastructure network), payments, compressed NFT/xNFT (executable NFT), and CLOB (centralized limit order book)/order flow payments.
Furthermore, Franklin Templeton remains optimistic about the prospects of meme coins and airdrops in the Solana ecosystem. It emphasizes that one of the main driving forces to address the congestion issues on the Solana network due to high demand is Firedancer, which is set to go live later this year. Firedancer is a Solana validation node client developed by Jump Crypto, aiming to optimize various aspects of the network. Once Firedancer is implemented, Solana’s technical capabilities are expected to significantly improve.
Franklin Templeton concludes that with continuous adoption, future catalysts, and exciting new areas, Solana has the potential to become the third-largest cryptocurrency asset after Bitcoin and Ethereum, and to lead the next wave of cryptocurrency adoption.