Memecoins Surge as BONK Leads Rally; Floki Gains Recognition as a Utility Token
Solana-based BONK led the pack among dog-themed meme coins in Saturday’s latest resurgence, as Bitcoin rebounded to over $98,000 after Friday’s sharp drop to around $93,000.
Meme coins surge
According to data from Coingecko, BONK surged 30%, while Dogecoin, Shiba Inu, Dogwifhat and Floki Inu surged 20%. Notably, dog-themed tokens have gained an average of 8% in value over the past 24 hours, outpacing the overall market’s 4.5% gain
Memecoin is characterized by high volatility and often outperforms major coins during price increases, acting as a leveraged bet on overall cryptocurrency market sentiment. Recently, Floki was recognized by the US CFTC as a model of utility token.
FLOKI – Utility Token
The token was noted at the Global Markets Advisory Committee (GMAC) meeting on November 21, which was focused on providing clarity to the digital asset market. The committee highlighted Floki’s growing ecosystem, specifically Valhalla, a blockchain-based Metaverse game set to launch in 2025. FLOKI will be the primary currency in the game, allowing players to earn and spend it, supporting its classification as a utility token.
It’s worth noting that tokens that provide direct practical use, like Floki’s character in Valhalla, are considered non-security goods. The subcommittee outlined that utility tokens must provide “immediate, non-incidental consumption use” to qualify.
FLOKI Ecosystem Keeps Growing
Floki’s ecosystem has grown significantly over the past year with the launch of the virtual universe game Valhalla and the asset-locked DeFi platform FlokiFi. Additionally, the developers of Floki have launched Floki University, an educational program designed to increase blockchain literacy.
Floki’s lead developer noted that this puts Floki on a completely different level than other memecoins, especially when the market turns and people start paying attention to fundamentals again.
On the other hand, interest in BONK is rising as efforts to reduce the token supply continue to increase. BonkDAO burned 100 billion tokens in November and plans to burn 1 trillion tokens in December, which may increase the value of the tokens due to scarcity.
