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Franklin Templeton’s recent study explores the close bond between meme coins and their respective blockchains, including Solana and Ethereum.
According to recent research shared via social media, meme coins, despite their lack of inherent value, play a significant role in the network activity of native blockchains. The study pointed to Dogecoin (DOGE) and BONK as prime examples of how these digital assets can influence and reflect the health of their platforms.
The Value Between Meme Coins and Their Native Networks pic.twitter.com/LYjQ5HvXHp
— Franklin Templeton Digital Assets (@FTI_DA) March 13, 2024
Franklin Templeton on DOGE and Solana
As detailed in Franklin Templeton’s analysis, Dogecoin, the pioneering meme coin launched in 2013 by two software engineers, emerged from the iconic “doge” meme depicting a Shiba Inu dog.
DOGE quickly gained prominence as the foremost meme coin by market cap. Elon Musk’s endorsement significantly boosted Dogecoin’s popularity, propelling its market capitalization to around $12 billion.
“Since the creation of Dogecoin, crypto markets have seen many new meme coins launch,” said Franklin Templeton. “We believe that meme coins have a strong relationship with their native networks.”
Over the past year, the cryptocurrency market has witnessed dramatic rises in several meme coins, with BONK on the Solana network standing out.
According to the report, Solana’s daily active user addresses saw a significant increase of 75% from the third to the fourth quarter of 2023.
“During Q4 of 2023, the Solana network captured a large percent of activity of all the active addresses during the same time that BONK saw a price surge,” the report reads. “Alluding further to the connection between meme coins and their native networks.”
Meme Coins “Have No Inherent Value”
The research also stated that coins originated from internet memes lack intrinsic value or practical use. The market movements closely resemble the unpredictable and viral patterns of internet memes, highlighting their speculative nature.
“Generally, meme coins require little technical knowledge, have low fees compared to traditional coins, and have the potential to provide opportunities for investors to make quick profits,” said Franklin Templeton.
“However, it is important to note that these assets see lots of price volatility,” the report warned.