Following the November 2022 crypto market crash, which led to the bankruptcy and collapse of FTX and other companies, Solana (SOL) has become a notable player, experiencing a price increase of over 560 % since the beginning of the year.
With a market capitalization of $67 billion, Solana has secured its leadership position fifth largest cryptocurrencybehind only Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tether's stablecoin USDT.
Despite its substantial growth, asset management giant and Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton plans further expansion of Solana as the emerging bull market takes shape.
Solana poised for continued growth
A recent report released by the company highlights Solana's strong position to capture the next wave of crypto adoption, cementing itself as a major crypto asset alongside Bitcoin and Ethereum.
The report highlights that Solana's growth will continue due to several key factors. Notably, the crypto industry saw accelerated activity in Q4 2023, with Solana being the focal point for major airdrops within its ecosystem, such as Jito and Pyth.
According to the report, these airdrops generated a wealth effect of over $1 billion, increasing the value of SOL and other tokens in the Solana ecosystem, particularly meme coins. This surge occurred alongside Bitcoin's upward trend, providing additional momentum to the Solana ecosystem.
Since then, the meme coins have attracted considerable attention, with a significant portion of the activity occurring on Solana. The network has witnessed the creation and exchange of many coinssome reaching market caps in the billions of dollars, including Bonk (BONK) and Dogwifhat (WIF).
The next big thing in the crypto industry?
According to the asset manager, Solana has demonstrated significant growth over the past year, as evidenced by increases in total network fees and decentralized exchange (DEX) volumes. 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 further strengthen as its performance improves, positioning it to capture upcoming trends in the crypto space.
The future remains uncertain as crypto enthusiasts ponder the next big thing in the industry. However, Franklin Templeton suggests that there is a strong possibility that Solana could play a central role.
According to the report, the Solana ecosystem is planning additional airdrops in the coming months, which will continue to strengthen the ecosystem's wealth effect.
Additionally, meme coin activity shows no signs of slowing down on the Solana network, further reinforcing the bullish sentiment surrounding the cryptocurrency and its ecosystem.
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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