According to a report from “The Block,” traditional financial institution Franklin Templeton stated in its March report that despite meme coins having no inherent value and being highly volatile, they maintain a close relationship with their native networks.
In a brief research report reissued on Thursday (14th) on the X platform, Franklin Templeton used the 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 most of the activities of all active addresses, while the price of BONK tokens rose significantly during the same period.
According to TradingView data, BONK tokens experienced a staggering 17,200% increase in the last quarter of last year, but they also suffered a decline of over 70% after reaching an all-time high.
Franklin Templeton also outlined the evolution of activities related to meme coins on various networks in a chart, including Ethereum, Arbitrum, Polygon, and Optimism blockchains. 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 costs and the 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 U.S. Bitcoin spot ETF, and according to data from The Block, the assets under management for “Franklin Bitcoin ETF” (EZBC) amount to approximately 185 million USD.
