American multinational investment firm Franklin Templeton has recently released an investor note discussing the potential of memecoins in the cryptocurrency market. While acknowledging that these tokens lack intrinsic value or utility, the note suggests that they could offer opportunities for rapid profits.

The bulletin, titled “The Value Between Meme Coins and Their Native Networks,” compares the price-performance of memecoins to a viral meme on the internet, attributing their popularity to their unique appeal. Memecoins are highlighted for their accessibility, low fees, and potential for quick gains, although they are also noted for their high price volatility.

One of the most well-known memecoins, Dogecoin (DOGE), is recognized as the first and largest in this category, with a market capitalization of $26 billion. The token, featuring a Shiba-Inu dog theme, experienced a 14% spike in value following comments from Tesla CEO Elon Musk about potential DOGE payments in the future.

Franklin Templeton emphasizes the close connection between memecoins and their respective networks, citing the example of the Solana-based BONK token, which surged by over 5,700% in the past year. The firm also mentions the success of a “Learn and Earn Campaign” for BONK launched by European fintech company Revolut.

The total market capitalization of memecoins currently stands at $65.5 billion, representing approximately 23% of the overall cryptocurrency market, according to data from CoinGecko.

While Franklin Templeton has shown interest in memecoins, the firm has also applied for a spot Ether (ETH) exchange-traded fund (ETF) in the US. Despite their involvement in the cryptocurrency space, the firm’s Franklin Bitcoin ETF (EZBC) has seen lower net capital inflows compared to other newly launched funds.

As the cryptocurrency market continues to evolve, memecoins are expected to play a significant role in shaping investor sentiment and market trends. Stay informed about the latest developments in the crypto world by exploring more news on Global Crypto News.

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