According to The Block report, traditional financial institution Franklin Templeton stated in its March report that meme coins, despite having no inherent value and being highly volatile, maintain a “close relationship” with their native networks.
In a brief research report reposted on X platform on Thursday (14th), Franklin Templeton used meme coin BONK in the Layer 1 blockchain Solana ecosystem as an example, stating, “We believe that meme coins have a close relationship with their native networks.” The report pointed out that the number of daily active user addresses on Solana increased by 75% in the fourth quarter of last year, capturing the majority of activities of all active addresses, while the price of BONK tokens increased significantly during the same period.
According to TradingView data, BONK tokens saw an astonishing 17,200% increase during the fourth quarter of last year, but experienced a decline of over 70% after reaching a new all-time high.
Franklin Templeton also summarized the evolution of activities related to meme coins in various networks in a chart, listing blockchains such as Ethereum, Arbitrum, Polygon, and Optimism. The financial giant stated, “In the past year, meme coins in multiple cryptocurrency markets have experienced parabolic surges.”
Franklin Templeton also mentioned that meme coins attract some cryptocurrency traders due to their low fees and potential for quick profits. However, the company warns, “Meme coins originate from internet memes and have no inherent value or utility.”
Franklin Templeton is one of the issuers of the US Bitcoin spot ETF, with assets under management of approximately $185 million for the “Franklin Bitcoin ETF,” according to data from The Block.
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