Solana-based bonk (BONK) led growth among dog-themed memes on Saturday as bitcoin staged a rally above $98,000, a day after Friday’s bloodbath that took it near $93,000.
BONK is up 30%, CoinGecko data shows, with dogecoin (DOGE), shiba inu (SHIB), dogwifhat (WIF), and floki (FLOKI) rising as much as 20%. The dog-themed token category gained 8% on average in the last 24 hours, outpacing a 4.5% jump across the market according to the CoinDesk 20 (CD20) broad index.
Memecoins are known for their high volatility and tend to outperform major tokens during price rallies, serving as a leveraged bet on overall crypto market sentiment.
However, in this case, fundamentals are helping to support gains and sentiment among some memecoins. FLOKI was named alongside ether (ETH) and Avalanche’s AVAX as a utility token at a Commodity Futures Trading Commission (CFTC) meeting last month.
The derivatives regulator proposed at a Global Markets Advisory Committee (GMAC) a new class of assets called utility tokens, which meet six criteria including providing their holder with “non-incidental, immediately available consumer use” on a crypto platform without include “governance and voting capacity.”
“FLOKI was recently highlighted by the CFTC Global Markets Advisory Committee as a case study of a utility token, which is a big deal and validates Floki’s approach of prioritizing utility,” said Floki lead developer , B, to CoinDesk in a Telegram message. “Floki’s Valhalla Metaverse game will be available early in the first quarter of 2024 and the recently launched Floki Trading Bot has generated over a million dollars in fees.
“This puts Floki on a completely different level from other memecoins, especially when the market changes and people start paying attention to fundamentals again,” B added.
Elsewhere, interest in BONK comes as a series of activities aim to deflate the token supply and gain traction among users, a move that has historically contributed to higher prices.
BonkDAO, a decentralized group of bonk believers who hold the token, burned 100 billion tokens from the circulating supply in November and aimed to burn one trillion tokens in December. This could increase the value of the token due to scarcity.
The feat could reach its goal in the coming weeks, observers say.
