Bonk Surges 30%, Leading Dog Meme Coin Recovery; Floki Gains ‘Utility Token’ Status from CFTC

Memecoins, known for their extreme price swings, often outshine major cryptocurrencies during bullish market trends, serving as high-risk, high-reward assets tied to market sentiment. Over the weekend, Solana-based Bonk (BONK) spearheaded a rally among dog-themed tokens as Bitcoin rebounded above $98,000, recovering from Friday’s sharp decline near $93,000.

Data from CoinGecko shows BONK surged by 30%, while Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF), and Floki (FLOKI) recorded gains of up to 20%. On average, dog-themed tokens climbed 8% over the past 24 hours, outperforming the broader crypto market’s 4.5% increase, as tracked by the CoinDesk 20 (CD20) index.

While memecoins usually thrive on speculative hype, recent gains are also supported by strong fundamentals. FLOKI, in particular, has gained credibility after being classified as a utility token by the U.S. Commodity Futures Trading Commission (CFTC). During a Global Markets Advisory Committee (GMAC) meeting last month, the CFTC introduced a category for utility tokens, which must meet six specific criteria, including immediate and consumable use on a crypto platform, excluding governance rights.

“FLOKI being recognized by the CFTC’s GMAC as a utility token is a major milestone. It validates our focus on building long-term value and utility,” said Floki lead developer B in a statement to CoinDesk. “With the upcoming launch of Floki’s Valhalla metaverse game in early Q1 2024 and the Floki Trading Bot generating over $1 million in fees, we’re positioning FLOKI as a leader in the space.”

B emphasized that these advancements place FLOKI in a different league compared to other memecoins, especially as market participants begin prioritizing tangible use cases.

Simultaneously, BONK’s recent rally is being fueled by aggressive supply reduction measures. BonkDAO, the decentralized organization overseeing BONK, incinerated 100 billion tokens in November and set an ambitious goal to burn one trillion tokens by the end of December. Reducing the token’s circulating supply creates scarcity, which can positively impact its price.

Analysts predict that BONK is on track to achieve its burn target, reinforcing investor confidence and sustaining its upward momentum.