Solana Memecoins, DEXes and DePIN Leave Franklin Templeton Bullish
Franklin Templeton believes Solana could rise to become the third-largest cryptocurrency. | Credit: Pixabay
Key Takeaways
- Franklin Templeton sees growth potential in Solana.
- Solana’s future involves driving crypto adoption.
- Memecoins and DEXes are fueling Solana’s growth.
Franklin Templeton, an investment firm managing over $1.5 trillion in assets, thinks Solana could become the third-largest cryptocurrency in the market.
The firm commended the project’s resilience, its memecoins, DEXes, ongoing airdrops, as well as developers’ efforts to address network congestion issues.
Franklin Templeton Bullish on Solana, Sees Further Growth
Franklin Templeton has recognized Solana’s potential within the crypto market. The firm highlighted Solana’s success in capturing market momentum during the fourth quarter of 2023 through strategic airdrops.
The investment firm also noted Solana’s resilience, particularly its recovery following the 2022 FTX collapse, supported by strong adoption metrics. Thanks, in part, to its low fees and scalability, Solana has thrived in the memecoin sector. Tokens such as BONK and WIF, maintaining positions in the top 100 cryptocurrencies by market capitalization.
Franklin Templeton views Solana as “uniquely qualified” to be a central hub for various sectors within the crypto world, including decentralized physical infrastructure (DePIN), payments, compression non-fungible tokens (NFTs), and centralized limit order books (CLOBs). The firm anticipates a spike in Solana network activity in the near future.
The investment giant also noted :
“The Solana ecosystem is expected to see more airdrops in the coming months, which should continue to enhance the wealth effect within the ecosystem. Additionally, memecoin activity on the network shows no signs of diminishing.”
Solana to Become Third Largest Crypto, Capture Next Adoption Wave
Looking ahead, Franklin Templeton anticipates further growth for Solana, citing its performance and network effects.
Solana hosts a variety of projects across payments, decentralized infrastructure, and innovative non-fungible tokens (NFTs), which the firm believes could drive the next wave of crypto adoption.
According to the company:
“Crypto enthusiasts are wondering what the next big thing in crypto might be. While we don’t know the precise answer, we’d argue there is a strong chance it happens on Solana.”
Franklin Templeton acknowledged that the surge in activity on Solana has led to operational challenges but also highlighted the developers’ efforts to address these issues swiftly. The firm concluded: “Solana will establish itself as the third major crypto asset after Bitcoin and Ether, and will likely be the network that captures the next major wave of crypto adoption.”
Solana’s 75% Increase in Network Activity Linked to Meme Coin Surge
Recently, Franklin Templeton reported a significant 75% increase in Solana’s network activity between the third and fourth quarters of 2023. This surge was accompanied by a notable rise in the number of Solana wallets holding memecoins.
Analysts attributed this growth primarily to the dramatic rise of Solana’s leading meme coin, BONK, which saw its market capitalization swell from $40 million in November to nearly $2.5 billion at its peak on March 5.
According to Franklin Templeton’s analysts:
“During Q4 of 2023, the Solana network captured a large percentage of meme coin activity, coinciding with BONK’s price surge.”
They also highlighted this as evidence of the strong link between meme tokens and their respective networks. While the research note clarified that Franklin Templeton is not advising investments in memecoins, it acknowledged their growing recognition as a vital element of the Web 3.0 ecosystem and crypto culture.
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