In the aftermath of the seismic crypto market crash in November 2022, which triggered the demise and imploding of FTX and various other firms, Solana (SOL) has risen like a phoenix. SOL has experienced a jaw-dropping price surge of over 560% within the year and has successfully etched its name as a star performer amidst the rubble.
Boasting a market cap of a staggering $67 Billion, Solana has entrenched its position as the fifth-largest cryptocurrency in the globe, trailing only the industry titans – Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Tether’s USDT stablecoin.
Despite its substantial ascent, asset management behemoth and Bitcoin ETF issuer, Franklin Templeton, projects an even brighter future. They anticipate Solana to further broaden its horizons and carve an even larger piece of the crypto market pie as the emerging bull market begins to take form.
Salient observations in a recent report by the firm underline Solana’s robust position to capture the next surge of crypto adoption. The report places Solana firmly alongside the heavy hitters of the crypto world, Bitcoin and Ethereum.
Several pivotal factors underpin the projected growth of Solana, according to the report. The final quarter of 2023 witnessed an acceleration of activity within the crypto industry, with Solana being the center of gravity for major airdrops within its ecosystem. Notably, airdrops like Jito and Pyth generated a wealth effect exceeding one billion dollars, pumping up the value of SOL and other tokens within the Solana ecosystem. These events coincided with Bitcoin’s upward trajectory, providing a tailwind to Solana’s momentum.
Meme coins have since captured the limelight. They have generated a lion’s share of activity on Solana, adding to its enduring allure. The network has been fertile ground for the birth and trading of numerous meme coins. Some have even reached astronomical valuations, with multi-billion-dollar market caps, including Bonk (BONK) and Dogwifhat (WIF).
The growing scale of Solana is tangible in the network’s escalating total fees and decentralized exchange volumes. The network’s competitive edge lies in its minimal transaction fees, low latency and a high rate of data throughput, setting it apart from its rivals. These attributes have been instrumental to its ascent.
The influence of the Solana network is expected to wax as its performance escalates, posturing it to latch onto the upcoming trends in the cryptoverse. Cryptocurrency enthusiasts across the globe are speculating the industry’s next blockbuster breakthrough, and Franklin Templeton hints at Solana potentially being a key player.
The report reveals that the Solana ecosystem anticipates further airdrops in the offing, which will amplify the ecosystem’s ‘wealth effect.’ Also, the flurry of meme coin activity shows no signs of decelerating on the Solana network, which only fuels the bullish fervor surrounding the cryptocurrency and its ecosystem.
In the past week, SOL’s price recovery has been a sight to behold. The charts now show SOL striving to stabilize above the $150 mark, registering a hefty 21% rise in value in a week.
