Meme coins have 'strong relationship' with native networks like Solana: Franklin Templeton
Meme coins maintain a “strong” connection to their native networks, according to research published by the traditional financial institution Franklin Templeton.The global asset manager pinpointed networks such as Solana, Ethereum, Arbitrum, Polygon and Optimism.
In a short research note republished on X Wednesday, the global asset management company used the Solana-based meme coin BONK as an example. "We believe that meme coins have a strong relationship with their native networks," Franklin Templeton said in its report. During the fourth quarter of last year, the "Solana network captured a large percent of activity of all the active addresses during the same time that BONK saw a price surge," the report also noted.
In a chart, Franklin Templeton also outlined how activity has evolved across various networks associated with meme coins, citing blockchains like Ethereum ETH +1.32% , Arbitrum ARB +4.11% , Polygon MATIC +9.45% and Optimism OP +0.58% . "In the last year, crypto markets have seen multiple meme coins parabolically surge," the financial giant said.
Active addresses according to blockchain. Image: Franklin Templeton.
No 'inherent value'
Franklin Templeton also said that meme coins appealed to some crypto traders because of the low fees and opportunity for quick gains, but cautioned that on their own the tokens are practically worthless. "Meme coins are derived from internet memes and have no inherent value or utility," Franklin Templeton said in its report.
The asset manager is an issuer of a spot bitcoin ETF, which began trading in January. According to The Block Data Dashboard , the financial instrument has about $185 million under management.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Morgan Stanley reviews the AI crash: It's the valuation that's being slashed, not the profits! But don't rush to bottom-fish.
Morgan Stanley stated that the AI pullback is driven by valuation contraction, while profit expectations continue to rise. It advises against indiscriminate bottom-fishing upstream sectors, recommending selective allocation to application players, with priority given to those in the US and Europe with safety cushions.
SpaceX (SPCX.US) Under the $500 Billion Growth Vision: Morgan Stanley Bets on AI Computing Power Explosion, "Big Bears" Warn of a Bubble
Morgan Stanley remains optimistic that the company's stock price could reach $300, while "Big Short" Michael Burry questions whether its high valuation can be sustained. The real disagreement between the two sides centers on whether SpaceX can leverage the synergistic advantages of rockets, satellite communications, and AI computing power to generate sustained cash flow sufficient to support a $1 trillion valuation.
AI Trading "Weather Vane": Meta's Bond Issuance Faces Multiple Twists and Turns
Meta's $46 billion Election Day bond issuance faced multiple challenges: a credit rating downgrade by S&P, Microsoft gaining market share, and political upheaval. The CFO personally presented to 500 investors, ultimately paying a real financial cost—the spread on the longest-term bonds widened by 90 basis points compared to April. The Democratic "blue wave" has sharply increased regulatory risks for AI data centers, tech bond spreads continued to widen last week, and whether AI capital expenditures can translate into returns remains the biggest question for the market.
CICC: Accelerated Employment Expansion, Fed Maintains Gradual Rate Hikes
China International Capital Corporation (CICC) released a research report stating that the baseline scenario remains that the Federal Reserve will raise interest rates once more in December and then shift to a wait-and-see approach.
Crypto prices
More
