Solana, once considered a forgotten cryptocurrency, is now poised to become one of the top three cryptocurrencies alongside Bitcoin and Ether, according to investment manager Franklin Templeton. In a market note on May 2, the firm stated that Solana has been successful in capturing the recent surge in crypto activity and is well-positioned to continue growing and solidify its position as a major crypto asset. The firm attributes Solana’s success to the popularity of memecoins like Bonk and Dogwifhat, as well as major airdrops like Jito and Pyth Network, which have boosted token prices and decentralized exchange volumes. Franklin Templeton believes that the wealth effect generated by these factors will continue to drive Solana’s growth, especially with more expected airdrops and the ongoing trading of memecoins. The firm also highlights Solana’s unique qualifications to tackle decentralized physical infrastructure networks, compressed nonfungible tokens, centralized limit order books, and micropayments, which are likely to contribute to the next wave of crypto adoption. While Solana has experienced congestion issues, the firm notes that developers are actively working on a solution with the upcoming Firedancer update. Solana is currently the fifth largest cryptocurrency with a market capitalization of $65.3 billion and the fourth-largest blockchain with a total value locked of $3.99 billion.
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