Memecoins, characterized by their sharp volatility, often outperform larger cryptocurrencies during market rallies, acting as speculative assets tied closely to investor sentiment. Over the weekend, Solana-based Bonk (BONK) led a notable surge among dog-themed tokens as Bitcoin climbed back above $98,000, recovering from its steep drop near $93,000 on Friday.

According to CoinGecko data, BONK jumped 30%, while Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF), and Floki (FLOKI) recorded gains of up to 20%. Dog-themed tokens, on average, rose by 8% in the past 24 hours, outperforming the broader market’s 4.5% increase as measured by the CoinDesk 20 (CD20) index.

While memecoins often rely on hype-driven momentum, this recent rally has also been supported by tangible developments. FLOKI, for example, received recognition from the U.S. Commodity Futures Trading Commission (CFTC) as a utility token during a Global Markets Advisory Committee (GMAC) meeting last month. Utility tokens, as defined by the CFTC, must meet six criteria, including providing immediate and consumable functionality on a platform without governance rights.

“FLOKI’s recognition by the CFTC’s GMAC as a utility token is a landmark moment for our project,” said Floki lead developer B in a statement to CoinDesk. “With the Valhalla metaverse game set to launch in early Q1 2024 and our Floki Trading Bot already generating over $1 million in fees, we’re offering real utility and long-term value.”

B highlighted that these achievements distinguish FLOKI from other memecoins, especially as investor focus shifts toward projects with demonstrable fundamentals.

At the same time, BONK’s rally is being supported by token supply reduction initiatives. BonkDAO, the decentralized body managing BONK, burned 100 billion tokens in November and set an ambitious goal to burn one trillion tokens by December’s end. Historically, such token burns have helped create scarcity and upward price momentum.

Market analysts suggest that BONK is on track to meet its burn target, further fueling optimism among investors and driving continued growth in the token’s value.