Solana’s (SOL) price has been rebounding in recent weeks, up for the second straight week and currently trading around $101. Asset management firm Franklin Templeton recently voiced optimism about Solana, pointing to increasing network activity and developer demand in decentralized finance (DeFi), NFTs, and other web3 spaces. Solana is gaining traction due to its high transaction speeds, low fees, and efficiency. Franklin Templeton’s bullish outlook raises the possibility they may seek regulatory approval from the SEC for a Solana exchange-traded fund (ETF) soon.
Technical analysis shows Solana remains in a bullish upward trend, trading above key moving averages. Solana is growing market share in DeFi, NFTs, and other web3 sectors where it powers networks like Helium and Hivemapper. The next resistance level to watch is around $126, the December high. Breaking above that could see Solana rally to $150 as momentum builds behind the network.
Franklin Templeton’s optimism stems from Solana’s ability to scale efficiently. With transaction volumes and developer demand increasing, Solana appears poised for further growth. The asset manager’s bullishness signals institutional interest in Solana is building, which could propel the price higher if the firm moves forward with plans for a Solana ETF product.
Solana gained ground in 2023 even amidst the FTX fallout and oversupply concerns. While the wider crypto market struggled, Solana saw its ecosystem expand as activity on DEXs surpassed Ethereum. Tokens like Bonk rallied hundreds of percent alongside Solana’s price rebound. However, some Solana ecosystem coins have since pulled back as investors take profits.
Despite the recent cooldown, Franklin Templeton remains bullish on Solana’s ecosystem and scalability. With the firm managing over $1.5 trillion in assets, their optimism represents a strong vote of confidence in Solana’s future growth prospects. Regulatory approval of a Solana ETF could open the floodgates for further institutional adoption.
