Thus, trading volumes of Dogecoin and Floki shot up a whopping 200% in a couple of days. What is the reason for this interest? Was this market reaction to be expected? And could X become a meme token ecosystem?
The meme cryptocurrencies Dogecoin and Floki locked in robust gains after the XPayments account was launched on social median platform X (formerly Twitter). There could be a number of reasons behind this rally:
1. Expectations that X could integrate support for cryptocurrencies and turn DOGE and FLOKI into payment options on the platform. Given Tesla's previous experience with DOGE, such expectations look quite logical.
2. Speculative exuberance and FOMO (fear of missing out). The news triggered a wave of speculation and buying of these coins, which, in all likelihood, will be slated for resale at a later time.
3.The “Meme” effect. These cryptocurrencies are popular in the online community, and any news related to them tends to stoke interest in them, causing a spike in volatility and an upturn in trading volumes.
Where there is potential for hype and speculation, volatility and volumes will never be far behind. Thus, the market reaction was quite predictable.
Could X become an ecosystem for meme tokens? Theoretically, this is possible. However, at the moment there is no confirmation that DOGE, FLOKI or other similar assets will actually be integrated into XPayments. For the time being, these are just rumors and speculation.