Global asset management firm Franklin Templeton recently published a research note highlighting the intriguing relationship between memecoins and their native networks. The company argues that despite their inherent volatility and lack of intrinsic value, memecoins maintain a solid bond with their native network.
The research note, republished Wednesday, uses Solana-based memecoin BONK as a case study.
“We believe Memecoins have a strong relationship with their native networks,” the report states. He also notes that in the fourth quarter of last year, the Solana network captured a significant percentage of activity across all active addresses, which coincided with the price increase on BONK.
Interestingly, according to the shared graph, approximately half of the cryptocurrency wallets associated with memecoins currently consist of wallets on the Solana network.
Franklin Templeton's report also includes a chart summarizing the evolution of activity across various networks associated with memecoins. Blockchains such as Ethereum, Arbitrum, Polygon and Optimism are mentioned in the chart. “Over the past year, crypto markets have seen multiple memecoins rise parabolically,” the financial giant observed.
However, the report also includes a warning. While Memecoins may appeal to some crypto investors due to their low fees and potential for quick profits, Franklin Templeton warns that these tokens are practically worthless on their own. “Memecoins are derived from internet memes and have no inherent value or utility,” the report states.
*This is not investment advice.