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Asset management firm Franklin Templeton sees growing potential for Solana to establish itself as the third-largest cryptocurrency on the market.
The asset manager with over $1.5 trillion in assets under management (AUM) took to x on May 2 to praise Solana, currently the fifth-largest cryptocurrency by market cap.
“Solana's growth is likely to continue because it is well positioned to capture the next wave of cryptocurrency adoption, establishing itself as the third largest crypto asset after bitcoin (btc) and ethereum (eth),” the firm said.
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Franklin Templeton also mentioned the strength of the network. Solana was severely affected by the FTX crisis in 2022, but managed to recover with strong adoption numbers. Due to its low fees and scalability, Solana also took advantage of the memecoin craze, creating 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 several initiatives implementing use cases, including payments, decentralized physical infrastructure network (DePIN), and compression non-fungible tokens (nft), which Franklin Templeton believes will help the blockchain usher in the next adoption wave.
The signature note said:
“Cryptocurrency enthusiasts are wondering what the next big thing in cryptocurrency could be… While we don't know the precise answer, we argue that there is a strong possibility that it will happen in Solana.”
While the institution recognized that the increase in activity had caused operational problems in Solana, it also recognized the efforts of developers working to fix these problems as soon as possible.
On October 31, Dan Albert, CEO of the Solana Foundation, revealed the testnet launch for Firedancer, an early scaling solution for Solana.
The project, spearheaded by web3 development company Jump crypto since last August, is expected to improve the network's speed, reliability, and validator diversity, with a mainnet launch projected for the first half of 2024.
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