Dogecoin (CRYPTO: DOGE) has recorded big gains during the last trading day. The price of the cryptocurrency token is up 14.6% in the last 24 hours as of 6:15 PM ET on Friday. Meanwhile, Bitcoin grew by 1.6% over the entire period, i Ethereum it grew by 5%.
The crypto market experienced a bullish momentum during the last day of trading, but there is also a major coin-specific catalyst for Dogecoin’s gains. Investors are betting that X’s new payment system will launch soon and that Dogecoin could be incorporated into the platform.
X, the social media platform formerly known as Twitter, has indicated plans to launch a payment processing platform this year. The company is owned Tesla CEO Elon Musk, who has been the most prominent supporter of Dogecoin.
MacRumors recently published source code online that it claims is from X’s new payment service. While there is no official indication as to whether the code is actually from the upcoming payment platform, the alleged leak has fueled excitement for the service and the cryptocurrencies it may support.
For now, there is no clear indication whether Dogecoin will be integrated into the X payment network. But that hasn’t stopped the bullish momentum building for the popular meme coin.
Dogecoin is currently the most valuable in the world meme coin. With a market cap of roughly $56.5 billion, it stands head and shoulders above other similar tokens in the category. It is also ranked as the seventh largest cryptocurrency in the world by market capitalization.
As a token that primarily functions as a speculative investment and payment mechanism, Dogecoin’s valuation is closely related to adoption trends and overall market momentum. If X’s payment system were to integrate the token as one of the primary supported cryptocurrencies, it could open the door to significant valuation gains.
Elon Musk has already shown support for the token, and such a scenario is a real possibility. On the other hand, investors should go forward with the understanding that there are no guarantees that Dogecoin will be supported on X’s payment platform — and the token remains a risky and highly speculative play.
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