Meme coins possess no “intrinsic” value and are highly volatile, yet they maintain “strong relationships” with their native networks, according to Franklin Templeton.
The Value Between Meme Coins and Their Native Networks pic.twitter.com/LYjQ5HvXHp
— Franklin Templeton Digital Assets (@FTI_DA) March 13, 2024
In a brief research note, analysts cited the BONK token launched on Solana as an example. In the fourth quarter of 2023, the network experienced a surge in on-chain activity, coinciding with the meme coin’s growth.
Experts also presented a chart illustrating how network dynamics impact meme tokens across various ecosystems.
The company noted that meme coins have attracted many traders due to low fees and the potential for quick profits. However, experts reminded of their “zero value.”
“Meme coins originated from internet memes and have no intrinsic value or utility,” the researchers warned.
Earlier, increased network activity in Ethereum, driven by the popularity of meme coins, led to fees reaching a two-year high. From March 2 to 9, transaction fees in the mainnet amounted to $193 million.
As reported, analysts at K33 Research saw the meme coin rally as a sign of an impending altseason.
Later, Bitfinex pointed to the rise of AI tokens and cat-themed coins.