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Solana Poised to Join Bitcoin and Ethereum as a Leading Crypto Asset, Predicts Franklin Templeton

Resilience and forecast of Solana’s growth

Amidst recovery from recent setbacks, Solana is poised to escalate its position in the cryptocurrency hierarchy, challenging the dominance of Bitcoin and Ethereum.

Key takeaways:

  • Solana is forecasted to become a major player in the cryptocurrency market alongside Bitcoin and Ethereum.
  • Significant airdrops and increasing transaction volumes highlight Solana's potential for broader adoption.

Despite the setbacks from the FTX collapse in late 2022, Solana has shown impressive resilience and is now predicted to rise as the third major crypto asset alongside Bitcoin and Ethereum. According to a recent report by Franklin Templeton, a global asset manager with $1.6 trillion under management, the report entitled "Solana: Accelerated Adoption," forecasts significant growth for Solana, driven by its strong positioning to leverage upcoming crypto adoption waves.

The report articulates: 

"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)." 

Analysts at Franklin Templeton have observed that Solana has been pivotal in harnessing the increased crypto activity, particularly highlighted by significant airdrops within its ecosystem, including those from Jito and Pyth. These events have catalyzed a wealth creation effect surpassing one billion dollars, notably uplifting SOL and other tokens within the Solana network, especially meme coins.

Further underlining Solana’s growth trajectory, the report points out notable increases in total fees and decentralized exchange (DEX) volumes over the past year. 

The report details:

"In the past year, Solana has seen significant growth demonstrated through an increase in both total fees and DEX volumes on the network," 

This uptick is a strong indicator of Solana's expanding utility and adoption.

Key drivers and future prospects in Solana’s ecosystem

Solana is seen as uniquely equipped to lead in several emerging sectors, such as decentralized physical infrastructure networks (DePIN), micropayments, compression NFTs (XNFTs), and centralized limit order books (CLOBs) with payment-for-order-flow models. Despite facing congestion issues due to these high demands, the developer community is actively engaged in crafting solutions. A notable development on this front is Firedancer, a validator client by Jump Crypto, expected to significantly alleviate these congestion challenges.

Franklin Templeton's heightened interest in Solana, as reflected in their recent tweets, is influenced by the vision of Solana co-founder Anatoly Yakovenko and the ecosystem’s advancements in areas like decentralized prediction markets, DeFi, meme coins, and NFTs during the latter part of 2023.