Meme Coins Strongly Correlated to Network Growth: Franklin Templeton
Meme coins have a strong correlation between their price increases and the growth of user wallets on the underlying blockchains, according to a report by Franklin Templeton's Digital Assets team. These tokens, despite having no inherent value, offer investors chances for quick profits and have gained popularity due to their unique nature. The report found that active addresses on various blockchain networks increased alongside a rise in meme coin trading activity. Notably, Solana-based BONK surged in Q4 2023, with Solana daily active user addresses up 75% quarter over quarter. Some traders view the surge in meme coins as a way to bet on a blockchain's growth. The Avalanche Foundation has started investing in meme tokens built on its network, acknowledging the online culture and memetic value these tokens can generate among investors.
