In a recent recovery on Saturday, Solana-based BONK led the rally among dog-themed meme coins, as Bitcoin bounced back above $98,000 after a steep drop to around $93,000 on Friday.
Memecoins Surge
As per data from Coingecko, BONK surged 30%, while Dogecoin, Shiba Inu, Dogwifhat and Floki Inu surged as much as 20%. Notably, the dog-themed tokens, on average, saw an 8% increase in value over the past 24 hours, outpacing the overall market, which rose by 4.5%
Memecoins characterised by high volatility, often outperform major tokens during price rallies, acting as a leveraged bet on the overall crypto market sentiment. Recently, Floki was recognized by the U.S. CFTC as an example of a utility token.
FLOKI – A Utility Token
The token was noted during the Global Markets Advisory Committee (GMAC) meeting on Nov. 21, where the focus was on providing clarity for digital asset markets. The committee highlighted Floki for its growing ecosystem, especially Valhalla, a blockchain-based metaverse game launching in 2025. FLOKI will be the primary currency in the game, enabling players to earn and spend it, which supports its classification as a utility token.
Notably, tokens that provide immediate practical use like Floki’s role in Valhalla are being acknowledged as non-security commodities. The subcommittee outlined that utility tokens must offer “immediate, non-incidental consumptive use” to qualify.
FLOKI Ecosystem Sees Growth
Floki’s ecosystem has seen significant growth over the past year, with the launch of Valhalla, a metaverse game, and FlokiFi, a DeFi platform for asset locking. Besides, Floki’s developers introduced Floki University, an educational initiative aimed at enhancing blockchain literacy.
Floki’s lead developer noted that this puts Floki on an entirely different level from other memecoins, especially when the market turns and people start to pay attention to fundamentals again.
On the other side, Interest in BONK is rising as efforts to reduce its token supply gain momentum. BonkDAO burned 100 billion tokens in November and plans to burn a trillion tokens in December, which could increase the token’s value due to scarcity.
