The Solana-based bonk (BONK) token saw significant growth on Saturday, outpacing other dog-themed memes as bitcoin made a recovery rally back above $98,000. This surge in BONK price, as reported by CoinGecko, was accompanied by similar gains in other dog-themed tokens such as dogecoin (DOGE), shiba inu (SHIB), dogwifhat (WIF), and floki (FLOKI), with some of them surging as much as 20%.
The overall dog-themed token category gained an average of 8% in the past 24 hours, surpassing the market-wide jump of 4.5% tracked by the CoinDesk 20 (CD20) index. Memecoins like these are known for their high volatility and tend to perform well during price rallies, often serving as a leveraged bet on the overall sentiment in the crypto market.
However, in this particular case, the gains in these tokens are backed by fundamentals rather than just market sentiment. FLOKI, for example, was highlighted by the Commodity Futures Trading Commission (CFTC) as a utility token during a recent meeting. This recognition, alongside other developments such as the upcoming launch of the Valhalla metaverse game, has set FLOKI apart from other memecoins.
On the other hand, the surge in interest for BONK can be attributed to efforts to deflate the token supply, a move that historically leads to higher prices. BonkDAO, a decentralized group of bonk supporters, burned 100 billion tokens from the circulating supply in November and aimed for a trillion token burn in December. This reduction in supply could potentially increase the token’s value due to scarcity.
Observers believe that the trillion token burn target could be achieved in the coming weeks, further driving up the price of BONK. With both fundamental developments and supply-deflation strategies at play, the future looks promising for these dog-themed meme tokens in the crypto market.