Franklin Templeton, a prominent asset management firm with over $1.5 trillion in assets under management, has highlighted the potential of Solana to become the third-largest cryptocurrency in the market. Solana, currently ranked as the fifth largest cryptocurrency by market cap, is poised for continued growth according to the asset manager.

In a recent note, Franklin Templeton praised Solana’s ability to capture the next wave of crypto adoption, positioning itself as a major player alongside Bitcoin and Ethereum. The firm pointed out that Solana experienced significant growth during Q4 2023 through native airdrops, which boosted the entire SOL ecosystem.

Despite facing challenges such as FTX’s meltdown in 2022, Solana demonstrated resilience and solid adoption numbers. With its low fees and scalability, Solana also capitalized on the memecoin trend by creating popular meme tokens like BONK and WIF, which have maintained top positions in market valuation.

Franklin Templeton foresees Solana surpassing its all-time high as it continues to expand its reach and leverage its performance and network effects to capitalize on upcoming crypto trends. The network hosts various initiatives for payments, decentralized physical infrastructure network (DePIN), and compression non-fungible tokens (NFTs), which are expected to drive adoption.

The firm highlighted the efforts of developers in addressing operational issues within Solana and mentioned the launch of the testnet for Firedancer, a scaling solution for Solana. Spearheaded by web3 development firm Jump Crypto, Firedancer aims to enhance the network’s speed, reliability, and validator diversity, with a mainnet launch scheduled for the first half of 2024.

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