In true meme coin fashion, Floki crypto saw a 25% pump this week, thanks to a familiar catalyst.
Summary
- Elon Musk’s X post ignited renewed interest in the memecoin inspired by his dog’s name
- Floki crypto surged 25% to a weekly high after Musk published the video
- The memecoin reacted similarly to past instances of social media hype
Just when the memecoin markets started cooling off, Floki is once again riding the social media hype train On Monday, October 20, Tesla CEO Elon Musk shared an AI-generated video of representing his dog, Floki. The video, showing Floki in a suit at the X CEO desk, attracted a lot of attention. Now, traders are wondering whether this hype will last.
Shortly after Musk posted the video, Floki (FLOKI) rallied to a weekly high of $0.00008831 on an 800% surge in trading volume. This rally saw Floki recover some of its losses from October 10, when a major market crash pummeled the entire crypto market. Memecoins were among the most affected, with most yet to recover their earlier highs.
Will Floki Inu’s recovery last?
Althought Elon Musk has no direct involvement with Floki crypto, it is inspired by Elon Musk’s dog, a Shiba called Floki. For that reason, whenever Musk posts anything related to his dog, the memecoin goes up. However, as some users have remarked, this effect is slowing down, with Musk’s tweets having less impact than in the past.
What is more, there’s little indication that the rally will last. Currently, despite Floki’s ecosystem expansions, including the Valhalla NFT game, the FlokiFi DeFi platform, its price is still mostly hype-driven. Notably, the last few major rallies were largely fuelled by headlines, including the Robinhood listing on August 8.
Still, despite becoming available to millions of Robinhood users, the memecoin continued to trend downward. Without a strong growth in its DeFi ecosystem, or a greater memecoin rally, Floki seems unlikely to break its downward trend.
