The cryptocurrency market has been experiencing great change and transformation in recent years. In addition to classic assets such as Bitcoin and Ethereum, new and interesting types of tokens are also emerging. One of these token types is meme coin projects. Meme coins are cryptocurrencies inspired by internet memes, often created in a humorous or ironic manner. Memecoins such as Dogecoin, Shiba Inu and BONK have gained immense popularity recently.
Franklin Templeton publishes meme coin report
There are also many questions about the value and potential behind meme coins. Can these tokens really be considered an investment tool? Or are they just speculative bubbles? A research note published by Franklin Templeton attempts to answer these questions. The report examines the relationship of meme coins with their local networks and evaluates what risks and opportunities these tokens present for investors.
Global asset management giant Franklin Templeton has published a research note examining the relationship of memecoins to their native networks. According to the report, although memecoins are inherently volatile and lack intrinsic value, they manage to establish a solid bond with their networks. The important items are as follows:
- BONK Case: The report discusses the Solana-based meme coin BONK as a case study. It is noted that the increase in BONK’s price in the last quarter of 2023 coincided with a significant part of the activity at all active addresses in the Solana network.
- Wallet Distribution: A chart shared by Franklin Templeton shows that approximately half of memecoin-linked cryptocurrency wallets are on the Solana network. This is interpreted in connection with the popularization of BONK and the increasing share of Solana in the memecoin market.
- Other Networks: The report states that activity related to meme coins has also increased on other blockchains such as Ethereum, Arbitrum, Polygon, and Optimism. It is noted that many meme coins experienced a parabolic rise in 2023.
Coins are “worthless” on their own
Franklin Templeton emphasizes that while meme coins may seem attractive due to their low transaction fees and potential for quick profits, these tokens are practically worthless on their own. “Meme coins are derived from internet memes and have no inherent value or utility,” the report states.
Franklin Templeton’s report shows that meme coins are a risky asset class for investors, but also hold potential room for growth linked to network growth and adoption.
Franklin Templeton’s report shows that meme coins are starting to play a significant role in the cryptocurrency market. While these tokens offer investors high risk and high return potential, they can also be a driver for network growth and adoption. Investors should consider the risks and volatility of these tokens before investing in meme coins.
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