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Franklin Templeton’s Study on Meme Coins and Blockchains
Franklin Templeton recently conducted a study that delves into the intricate connection between meme coins and their respective blockchains, such as Solana and Ethereum.
Role of Meme Coins in Network Activity
Research shared on social media highlights that meme coins, despite lacking inherent value, play a crucial role in the network activity of their native blockchains. Dogecoin (DOGE) and BONK are cited as prime examples showcasing how these digital assets can impact and mirror the health of their platforms.
Franklin Templeton’s Insights on DOGE and Solana
According to Franklin Templeton’s analysis, Dogecoin, which originated from the iconic “doge” meme featuring a Shiba Inu dog, quickly rose to prominence as the leading meme coin by market capitalization. The endorsement from Elon Musk notably boosted Dogecoin’s popularity, pushing its market cap to approximately $12 billion.
The study acknowledges the strong relationship between meme coins and their native networks, emphasizing the significant influence they exert on each other.
Solana and BONK Performance
Over the past year, the cryptocurrency market has witnessed substantial growth in various meme coins, with BONK on the Solana network emerging as a standout performer. Solana experienced a notable 75% increase in daily active user addresses from the third to the fourth quarter of 2023.
The report notes that during Q4 of 2023, Solana captured a significant portion of network activity, coinciding with BONK’s price surge. This correlation further underscores the interplay between meme coins and their native networks.
Speculative Nature of Meme Coins
The study emphasizes that meme coins, stemming from internet memes, lack intrinsic value or practical utility. Their market behavior mirrors the unpredictable and viral nature of internet memes, underscoring their speculative characteristics.
While meme coins offer opportunities for quick profits with low technical barriers and fees compared to traditional coins, investors should be cautious due to the high price volatility associated with these assets.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
