Dog Memecoins rebound as Bitcoin reaches $98,000.

Solana-based BONK led growth among dog-themed memes on Saturday, recovering above $98,000 a day after the carnage that sent Bitcoin soaring near $93,000.

BONK surged 30%, while dogecoin (DOGE), shiba inu (SHIB), dogwifhat (WIF), and floki (FLOKI) surged 20%, according to CoinGecko data. The dog-themed token category has risen an average of 8% over the past 24 hours, outperforming the 4.5% market-wide gain tracked by the broader CoinDesk 20 (CD20) index.

Memecoin is known for its high volatility and tends to outperform major tokens during price increases, acting as a leveraged bet on overall cryptocurrency market sentiment.

However, in this case, fundamentals are supporting some memecoin gains and sentiment. FLOKI was selected as a utility token at the Commodity Futures Trading Commission (CFTC) meeting last month, along with Ethereum (ETH) and Avalanche’s AVAX.

Derivatives regulator Global Markets Advisory Committee (GMAC) has proposed a new class of assets called utility tokens. Ability to vote.”

“FLOKI was recently highlighted by the CFTC’s Global Markets Advisory Committee as a case study for utility tokens, which is very important and validates Floki’s utility-first approach,” Floki lead developer B told CoinDesk in a Telegram message. He said. “Floki’s Valhalla metaverse game is scheduled for release in early Q1 2024, and the recently launched Floki Trading Bot has generated over $1 million in commissions.

“This puts Floki on a completely different level from other memecoins, especially when markets turn and people start paying attention to fundamentals again,” B added.

Elsewhere, interest in BONK is driven by various activities aimed at reducing the traction of the token’s supply growth among users. This has historically contributed to rising prices.

BonkDAO, a group of decentralized Bonk believers that maintain the tokens, burned 100 billion tokens from circulating supply in November and aims to burn 1 trillion tokens in December. This can increase the value of the token due to its scarcity.

Observers said the feat could be achieved within the next few weeks.