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Investment Giant Franklin Templeton Implied That The Value Of These Altcoins Is "Low" and Can Rise!
Investment giant Franklin Templeton noted in a recent report that there is a significant valuation difference among decentralized finance DeFi tokens on the Solana and Ethereum networks.
The report, which defines this inequality as "value asymmetry," points out that Solana's DeFi sector is growing faster and generating more revenue than Ethereum's, but its tokens remain relatively low in value.
The report said, 'Solana DeFi valuation multiples, despite significantly higher growth profiles, on average, trade at lower multiples than their Ethereum counterparts, highlighting a significant valuation asymmetry'.
Franklin Templeton conducted an analysis comparing the top five Ethereum-based DeFi projects LDO, AAVE, ENA, MKR and UNI with Solana's top five performing protocols JTO, JUP, KMNO, MNDE and RAY. The findings revealed that Solana projects experienced a surprising 2,400% median growth in fees compared to the previous year and a 9x median valuation coefficient. In contrast, Ethereum projects saw a more modest 150% growth and an 18x coefficient.
This valuation inequality follows a rapid expansion period for Solana. The decentralized exchanges of the network, (DEX), witnessed an increase in trading activities, especially led by memecoin investors. In January 2025, Solana's DEXs recorded higher transaction volumes than the total of the entire Ethereum ecosystem.
The report said, "DeFi may be moving away from the historical reign of EVM-based DeFi and entering the era of Solana Virtual Machine dominance."
However, Franklin Templeton stated that this does not indicate a decline in Ethereum. Instead, the firm noted that the increasing activity on Ethereum's layer-2 scaling solutions demonstrates the strategic evolution of the network. The report stated, "The shift of activity to layer-2 blockchains is evidence that Ethereum's scaling approach is progressing step by step."
Franklin Templeton predicted that despite the current undervaluation of Solana-based DeFi assets, this inequality may not last forever. The report concluded, "As Solana continues to demonstrate its resilience as a decentralized computing platform, the market may soon price blue-chip, cornerstone Solana DeFi protocols comparably to Ethereum protocols."