Though meme coins have no “inherent” value and are highly volatile, Franklin Templeton said, they maintain a “strong relationship” with their native networks.
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
-0.98%
, Arbitrum 
ARB
+2.24%
, Polygon 
MATIC
+5.72%
and Optimism 
OP
+0.73%
. “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 Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
About Author
RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master’s degree in Digital Sociology.