Franklin Templeton Study Reveals Close Relationship Between Meme Coins and Native Blockchains
A recent study conducted by Franklin Templeton explores the strong bond between meme coins and their respective blockchains, such as Solana and Ethereum. The study highlights the significant role that meme coins play in the network activity of native blockchains, despite their lack of inherent value. Dogecoin (DOGE) and BONK are cited as prime examples of how these digital assets can influence and reflect the health of their platforms.
Franklin Templeton on DOGE and Solana
The analysis from Franklin Templeton delves into the history of Dogecoin, the pioneering meme coin launched in 2013. Created by two software engineers, Dogecoin emerged from the iconic “doge” meme featuring a Shiba Inu dog. It quickly gained prominence as the leading meme coin by market capitalization. The endorsement from Elon Musk further boosted its popularity, driving its market capitalization to around $12 billion.
The study states, “Since the creation of Dogecoin, crypto markets have seen many new meme coins launch. We believe that meme coins have a strong relationship with their native networks.”
Additionally, the research highlights the rise of BONK on the Solana network over the past year. During this period, Solana’s daily active user addresses experienced a significant increase of 75% from Q3 to Q4 of 2023. The report suggests a connection between BONK’s price surge and the heightened activity on the Solana network.
Meme Coins “Have No Inherent Value”
The study acknowledges that meme coins derived from internet memes lack intrinsic value or practical use. Their market movements closely resemble the unpredictable and viral nature of internet memes, underscoring their speculative nature. Franklin Templeton notes that meme coins require minimal technical knowledge, have lower fees compared to traditional coins, and offer opportunities for quick profits. However, the report also warns about the high price volatility associated with these assets.
Hot Take: The Influence of Meme Coins on Native Blockchains
The study conducted by Franklin Templeton provides valuable insights into the relationship between meme coins and native blockchains. Here are some key takeaways:
- Meme coins, despite their lack of inherent value, play a significant role in the network activity of their respective blockchains.
- Dogecoin and BONK serve as examples of how meme coins can influence and reflect the health of their platforms.
- The rise of BONK on the Solana network coincided with a substantial increase in daily active user addresses, suggesting a connection between meme coin activity and blockchain usage.
- Meme coins are characterized by their speculative nature, driven by viral internet memes and unpredictable market movements.
- Investors should be aware of the high price volatility associated with meme coins.
While meme coins may lack intrinsic value, they have undoubtedly made an impact on the cryptocurrency space. As more meme coins emerge and gain popularity, it will be interesting to observe how they continue to shape and influence native blockchains.
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