Solana the Next Big Thing After Bitcoin, Ethereum? Why You Should Buy This Dip
Investing.com | May 08, 2024 05:59AM ET
- Franklin Templeton, a major investment management firm, sees Solana challenging for the third position among cryptocurrencies.
- Despite the collapse of its main investor and scalability issues, Solana's resilience and low transaction fees have attracted attention
- The investment giant has based this on Solana's strong positioning for wider crypto adoption in the future.
Investment management giant Franklin Templeton, a major player in the Bitcoin market, has identified Solana as a potential contender for the number three spot among cryptocurrencies.
Currently ranked fifth, Solana could surpass stablecoin Tether and BNB in market capitalization, according to a note from Franklin Templeton. The company, with over $1.5 trillion in assets under management, believes Solana is well-positioned to capitalize on the next wave of crypto adoption.
This bullish outlook comes despite recent challenges for Solana. The network, heavily impacted by the collapse of its former main investor FTX, also faced temporary scalability issues. However, Solana's developers quickly addressed these problems, showcasing network resilience.
Furthermore, Solana's low transaction fees and successful scalability efforts have fueled adoption. The network has also benefited from the recent memecoin boom, hosting popular projects like BONK and WIF.
Looking beyond meme coins, Franklin Templeton sees potential in other areas for Solana's growth. Decentralized payment systems and decentralized physical infrastructure (DePIN) projects are highlighted as promising sectors that could contribute to the network's expansion.
While acknowledging past network congestion issues, Franklin Templeton recognizes the developers' swift action in resolving them. This focus on continuous improvement strengthens the company's positive outlook on Solana's future.
Solana Technical View - Should You Buy This Dip?/h2
Solana's native token (SOL) currently sits at number 5 with a market cap of $65.2 billion, facing a sizable gap to close against BNB, which has a market cap of around $85 billion.
Currently, the token is experiencing a dip, with its price moving below the $146 level. Recently, the crypto started an uptrend in the past week but failed to stay above the $150 level.
This came after a sharp April decline from its 2024 high of $210. The medium-term outlook for SOL appears bullish, maintaining an upward trajectory.
Overall, the technical analysis suggests that SOL has the potential for further growth in the medium term.
However, breaking key resistance levels and maintaining upward momentum will be crucial for achieving Franklin Templeton's ambitious forecast of a top-three ranking.
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