🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

Solana the Next Big Thing After Bitcoin, Ethereum? Why You Should Buy This Dip

Published 05/08/2024, 05:59 PM
BTC/USD
-
BNB/USD
-
USDT/USD
-
SOL/USD
-
  • 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.
  • Invest like the big funds for under $9/month with our AI-powered ProPicks stock selection tool. Learn more here>>
  • 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?

    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. SOL Price Chart

    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.

    ***

    Take your investing game to the next level in 2024 with ProPicks

    Institutions and billionaire investors worldwide are already well ahead of the game when it comes to AI-powered investing, extensively using, customizing, and developing it to bulk up their returns and minimize losses.

    Now, InvestingPro users can do just the same from the comfort of their own homes with our new flagship AI-powered stock-picking tool: ProPicks.

    With our six strategies, including the flagship "Tech Titans," which outperformed the market by a lofty 1,745% over the last decade, investors have the best selection of stocks in the market at the tip of their fingers every month.

    Subscribe here and never miss a bull market again!

    Subscribe Today!

    Don't forget your free gift! Use coupon codes OAPRO1 and OAPRO2 at checkout to claim an extra 10% off on the Pro yearly and bi-yearly plans.

    Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.