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Franklin Templeton expects Solana to become the third largest cryptocurrency
Asset management company Franklin Templeton sees growing potential in Solana consolidate itself as the third largest cryptocurrency on the market.
The asset manager with more than $1.5 trillion in assets under management (AUM) took to X on May 2 to praise Solana, currently the fifth largest cryptocurrency by market capitalization.
“Solana’s growth is likely to continue as it is well positioned to capture the next wave of cryptocurrency adoption, cementing itself as the third leading crypto asset after Bitcoin (BTC) and Ethereum (ETH),” the firm said.
In the note shared on
Franklin Templeton also mentioned the robustness of the network. Solana was seriously affected since FTX’s meltdown in 2022, but he succeeded bounce back with solid adoption numbers. Thanks to low fees and scalability, Solana too capitalized on the memecoin crazecreating popular meme tokens, including BONK and WIF, which have remained among the top 100 cryptocurrencies by market valuation.
The Wall Street giant expects Solana to expand its reach as its performance and network effects position it to capitalize on upcoming crypto trends. The network hosts various initiatives that implement use cases, including payments, decentralized physical infrastructure network (DePIN) and non-fungible squeeze tokens (NFTs), which Franklin Templeton believes will help blockchain usher in the next wave of adoption.
The company note stated:
“Crypto enthusiasts are wondering what the next big thing in the cryptocurrency space could be… While we don’t know the exact answer, we would say there is a strong possibility of this happening on Solana.”
While acknowledging that the increased activity has caused operational problems at Solana, the institution also acknowledged the efforts of developers working to solve these problems as soon as possible.
On October 31, Dan Albert, executive director of the Solana Foundation, revealed the launch of the testnet for Firedancer, an early scaling solution for Solana.
The project, led by web3 development company Jump Crypto since last August, is expected to improve the speed, reliability and diversity of the network’s validators, with a mainnet launch expected in the first half of 2024.