Bonk Leaps 30% Amid Meme Token Revival; CFTC Designates Floki as a ‘Utility Token’

Memecoins, notorious for their volatility, frequently outperform major cryptocurrencies during bullish market conditions, acting as speculative assets driven by investor sentiment. Over the weekend, Solana-based Bonk (BONK) spearheaded gains among dog-themed tokens as Bitcoin rebounded above $98,000, recovering from Friday’s sharp decline near $93,000.

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

While memecoin rallies are often driven by social media hype and retail enthusiasm, recent gains have been bolstered by structural developments. FLOKI, for example, gained notable credibility after being recognized as a utility token by the U.S. Commodity Futures Trading Commission (CFTC) during a Global Markets Advisory Committee (GMAC) meeting last month. Utility tokens must meet six criteria, including offering immediate and consumable functionality on a crypto platform, without governance rights.

“The recognition of FLOKI as a utility token by the CFTC’s GMAC is a major validation of our project’s direction,” said Floki lead developer B in a statement to CoinDesk. “With the Valhalla metaverse game launching in early Q1 2024 and the Floki Trading Bot already generating over $1 million in fees, we’re building a sustainable ecosystem with real utility.”

B emphasized that these advancements set FLOKI apart from other memecoins, particularly as investors increasingly prioritize projects with tangible use cases.

Meanwhile, BONK’s price surge has been supported by aggressive token supply reduction strategies. BonkDAO, the decentralized organization managing BONK, burned 100 billion tokens in November and aims to burn a total of one trillion tokens by the end of December. Historically, such large-scale burns have reduced supply, driving upward price pressure.

Market analysts predict that BONK is well-positioned to meet its burn target, enhancing investor confidence and sustaining its upward momentum in the weeks ahead.