Solana is poised to become the third largest cryptocurrency after Bitcoin and Ethereum

American asset management giant Franklin Templeton noted today that Solana’s growth is expected to continue, solidifying its position as the third-largest crypto asset after BTC and ETH. It believes that Solana has strong technical capabilities and is expected to lead the adoption of DePIN, payments, CLOB and other fields.

Thanks to the outstanding performance of its own token SOL, as well as the continuous meme craze, airdrops, Ore mining and other incentives, the Solana network has become one of the high-profile public chains and is currently the fifth largest currency in market value.

Franklin expects Solana growth to continue

Just today, American asset management giant Franklin Templeton tweeted that Solana has demonstrated its resilience and dominance in crypto activities from last year to now, and positioned Solana to lead the next wave of crypto adoption. network, so its growth is likely to continue, solidifying its position as the third largest crypto asset after BTC and ETH.

Looking back at past performance, the report pointed out that cryptocurrency activities on Solana have accelerated since the fourth quarter of 2023, especially driven by major airdrops that occurred in the Solana ecosystem such as Jito and Pyth at that time, creating a wealth effect of more than US$1 billion. SOL and other Solana ecosystem tokens moved higher, especially Meme.

Meme coins have since received a lot of attention, with a large proportion of issuance and transactions taking place on Solana, some even reaching billions in market capitalization, such as Bonk (BONK) and Dogwifhat (WIF), which drives the total fees on the Solana network and a significant increase in DEX trading volume, as shown in the chart below.

Solana is most likely to bring the next wave of adoption

Looking to the future, Franklin predicts that the next big thing in the cryptocurrency field is likely to happen with Solana. The agency noted that Solana has strong technical capabilities and is particularly well suited to the areas we believe have the greatest potential to lead the next wave of adoption. These areas include:

DePIN (Decentralized Physical Infrastructure Network)

payments, especially small payments

Compressed NFT/xNFT (Executable NFT, executable NFT)

CLOB (Centralized Limit Order Book)/Order Flow Payment

In addition, Franklin is still optimistic about the prospects of the wealth creation effect of memes and airdrops in the Solana ecosystem, and emphasized that one of the main driving forces to solve the congestion problem of the Solana network due to high demand is Firedancer, which will be launched later this year. .

Firedancer is a Solana validator client developed by Jump Crypto and designed to optimize various parts of the network. After implementing Firedancer, several aspects of the Solana network will be improved, including:

(i) increase data throughput, (ii) increase client diversity, and (iii) fully utilize the hardware capabilities of validator nodes. Once Firedancer is implemented, Solana's technical capabilities are expected to increase significantly. On May 1, Firedancer engineer cantelopepeel.eth tweeted that the final integration of the Firedancer client is well underway and there is still a lot of work to be done, but the first comprehensive test is coming soon.

Franklin concluded that with continued adoption, future catalysts and exciting new areas, Solana is poised to become the third largest crypto asset after Bitcoin and Ethereum and lead the next wave of cryptocurrency adoption. network.