Bitcoin ETF Issuer Backs Solana's Soaring Growth amid Crypto Market Crash

By: Eva Baxter

After the crypto market crash in November 2022, Solana (SOL) has shown remarkable growth, with a year-to-date price increase of over 560%. Currently holding a market capitalization of $67 billion, Solana stands as the fifth largest cryptocurrency in the world.

Despite its swift expansion, Bitcoin exchange-traded fund (ETF) issuer Franklin Templeton predicts further growth for Solana. A report underscores Solana's strong position to leverage the next wave of crypto adoption and align itself with major crypto assets like Bitcoin and Ethereum. Part of the growth has been attributed to several airdrops within its ecosystem during Q4 2023, including those from Jito and Pyth, generating a wealth effect of over a billion dollars and driving up SOL value.

Substantial activity around meme coins on Solana has also attracted significant attention. The network has seen the creation and trading of numerous meme coins, some with multi-billion-dollar market caps such as Bonk (BONK) and Dogwifhat (WIF).

Furthermore, the network's low fees, high data throughput, and low transaction latency relative to other networks have contributed to its success and are expected to boost further as its performance improves. While the future of the crypto sector remains uncertain, Franklin Templeton believes Solana is well-positioned to lead the next big trend in the industry.