Elon Musk’s Post Sparks a Memecoin Rally
Elon Musk once again stirred the crypto market after posting a video of his Shiba Inu dog, Floki, portrayed as the “CEO” of X. The playful post triggered an instant reaction in the memecoin market, sending the price of FLOKI soaring by nearly 29% within hours.
On Monday, Musk shared an AI-generated video showing his dog sitting at a desk with glasses and a tie, saying, “Numbers, numbers, numbers? Is this working? Yay.” The post was captioned “Floki back on the job,” and it quickly went viral among his followers.
According to data from CoinGecko, the FLOKI token jumped from $0.00006572 to $0.00008469, marking a 28.8% increase shortly after Musk’s post. As of the latest update, the token corrected slightly to $0.00007998, but the move reinforced Musk’s lasting impact on speculative cryptocurrencies.
Musk’s Ongoing Influence on Memecoins
This isn’t the first time Musk has moved the market with a meme. His history with Dogecoin (DOGE) is well-documented, with past tweets, logo changes, and jokes frequently sending the token’s price soaring.
In fact, Musk’s influence over Dogecoin once sparked a class-action lawsuit in 2022, accusing him of manipulating DOGE prices through public comments and social media activity. The plaintiffs eventually withdrew the case on November 14, 2024.
Memecoin Market Struggles Amid Recent Crashes
Despite the excitement around FLOKI, the broader memecoin market has faced major turbulence in recent weeks. On October 10 and 11, a widespread crypto market crash wiped nearly 40% off the total memecoin valuation, according to CoinMarketCap.
The market dropped from $72 billion to $44 billion, erasing gains accumulated over the past three months and returning the sector to July levels. Although there was a short-lived recovery, another sell-off hit on Friday, with leading memecoins losing 9% to 11% in a single day.
The downturn followed a wave of “fear” sentiment across the broader crypto landscape, which saw around $230 billion in total value erased in just 24 hours.
Memecoins Still Thrive on Hype
Elon Musk’s playful posts continue to highlight how social media sentiment and celebrity influence can move the market, particularly for memecoins like FLOKI and DOGE. While these tokens often lack strong fundamentals, they remain a powerful reflection of how viral trends and online communities can still drive short-term gains in the crypto market.
