Solana to Emerge as Third Major Crypto Asset: Franklin Templeton

Franklin Templeton, a global investment firm managing $1.6 trillion, has released a report titled “Solana: Accelerated Adoption,” suggesting that Solana (SOL) is poised to become the third major cryptocurrency asset after Bitcoin (BTC) and Ethereum (ETH).

The report asserts, “Our view is that Solana’s growth is likely to continue because it is well positioned to capture the next wave of crypto adoption, solidifying itself as the third major crypto asset after Bitcoin (BTC) and Ethereum (ETH).”

Solana Set to Dominate the Industry

Analysts highlight Solana’s dominance in capturing the surge of crypto activity, driven by major airdrops within the Solana ecosystem, such as Jito and Pyth, which have created a “billion-dollar plus wealth effect,” driving SOL and other SOL ecosystem tokens higher, particularly meme coins.

“In the past year, Solana has seen significant growth demonstrated through an increase in both total fees and DEX volumes on the network,” the report mentions.

Increase in Total Fees

Solana has witnessed a significant increase in total fees and decentralized exchange (DEX) volumes over the past year, indicating robust growth.

Franklin Templeton believes that SOL is uniquely positioned to capture the next wave of adoption across various sectors, including decentralized physical infrastructure networks (DePIN), payments (especially micropayments), compression NFTs (XNFTs), and centralized limit order books (CLOBs) with payment-for-order-flow.

Issues on Solana

Despite experiencing congestion issues due to high demand, the developer community is actively working on solutions. One anticipated solution to address these issues is Firedancer, a Solana validator client developed by Jump Crypto.

Franklin Templeton’s growing interest in Solana, evident in their tweets earlier this year, stems from the firm’s attraction to Solana co-founder Anatoly Yakovenko’s vision and significant developments in the SOL ecosystem during Q4 2023, including progress in decentralized prediction markets (DePIN), decentralized finance (DeFi), meme coins, and NFTs.

Industry-Wide Support

As reported earlier by TheCoinRise, Fantom creator Andre Cronje has emerged as a supporter of the Solana network, reinforcing his stance on the ecosystem’s challenges amid rapid growth. Cronje believes that the performance issues in the blockchain are technical challenges rather than flaws in the network’s consensus mechanism.

As SOL continues to gain traction and showcase its potential for scalability and innovation, investors and analysts are closely watching its progress, anticipating its rise as a major player in the cryptocurrency market alongside Bitcoin and Ethereum.