Bitcoin ETF issuer Franklin Templeton is bullish on Solana (SOL), seeing it as the third-largest cryptocurrency

Following the November 2022 crypto market crash that led to the bankruptcy and collapse of FTX and other companies, Solana (SOL) has emerged as a standout performer, posting a year-to-date price increase of over 560%.

With a market capitalization of $67 billion, Solana has secured its place as the market leader fifth largest cryptocurrencyfollowed by Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and Tether's stablecoin USDT.

Despite its significant growth, asset management giant and Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton expects Solana to continue expanding as the emerging bull market takes shape.

Solana is ready for further growth

A recent one report The numbers released by the firm highlight Solana's strong position to capture the next wave of crypto adoption and establish itself as a key crypto asset alongside Bitcoin and Ethereum.

The report emphasizes that Solana's growth will continue due to several key factors. Notably, the crypto industry saw accelerated activity in the fourth quarter of 2023, with Solana being a focus for large airdrops within its ecosystem, such as Jito and Pyth.

According to the report, this is Air drops created a wealth effect of over a billion dollars and increased the value of SOL and other Solana ecosystem tokens, especially meme coins. This increase occurred in parallel with Bitcoin’s uptrend and gave additional momentum to the Solana ecosystem.

Since then, meme coins have gained significant attention, with a significant amount of activity taking place on Solana. The network has witnessed the creation and trading of numerous companies Meme coinswith some reaching 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 experienced significant growth over the past year, as evidenced by the increased total network fees and decentralized exchange (DEX) volume. The low network feesTransaction latency and high data throughput compared to other networks have contributed to its success.

Solana's network effects are expected to continue to strengthen as its performance improves, enabling it to take advantage of upcoming trends in the crypto space.

The future remains uncertain as crypto enthusiasts consider the next big thing in the industry. However, Franklin Templeton points out that there is a strong possibility that Solana could play a crucial role.

According to the report, the Solana ecosystem expects more airdrops in the coming months, which will further increase the wealth effect of the ecosystem.

Additionally, meme coin activity on the Solana network shows no signs of slowing down, further reinforcing the bullish sentiment surrounding the cryptocurrency and its ecosystem.

The daily chart shows SOL’s price recovery over the last seven days. Source: SOLUSD on TradingView.com

SOL is now trying to consolidate above the $150 level and has seen a significant increase of 21% in the last seven days alone.

Featured image from Shutterstock, chart from TradingView.com

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