Like a real coin, the Floki crypto saw a 25% surge this week, thanks to a familiar catalyst.
Summary
- Elon Musk’s X-rated post sparked renewed interest in memecoin inspired by his dog’s name
- Crypto Floki jumps 25% to weekly high after Musk posts video
- Memecoin reacted similarly to past instances of social media hype
Just as the memecoin markets were starting to calm down, Floki is once again jumping on the social media hype bandwagon. On Monday, October 20, Tesla CEO Elon Musk shared an AI-generated video depicting his dog, Floki. The video, showing Floki in a suit at the X CEO’s office, attracted a lot of attention. Today, traders are wondering if this hype will last.
Shortly after Musk posted the video, Floki (FLOKI) hit a weekly high of $0.00008831 on the back of an 800% increase in trading volume. This rally allowed Floki to recoup some of its losses from October 10, when a major market crash hit the entire crypto market. Memecoins have been among the worst hit, with most yet to return to their previous highs.
Will Floki Inu’s recovery last?
Although Elon Musk has no direct involvement in the Floki crypto, it is inspired by Elon Musk’s dog, a Shiba called Floki. For this reason, every time Musk posts something regarding his dog, memecoin rises. However, as some users have noticed, this effect is slowing down, with Musk’s tweets having less impact than in the past.
What’s more, there is no indication that the recovery will last. Currently, despite expansions to Floki’s ecosystem, including the Valhalla NFT game and the FlokiFi DeFi platform, its price remains primarily driven by hype. It’s worth noting that the last few major rallies were largely fueled by headlines, including Robinhood’s August 8 listing.
Yet despite becoming available to millions of Robinhood users, memecoin continued to decline. Without strong growth from its DeFi ecosystem, or a bigger memecoin rally, Floki seems unlikely to break its downtrend.
