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Floki (FLOKI) experienced a remarkable surge on Sunday, surpassing a 10% spike and recording its highest trading volumes in over three weeks. This upward momentum can be attributed to traders who eagerly bet on the tokens, driven by the prevailing focus on China and the promising prospects of Floki's Valhalla metaverse game.
Trading volumes for the Shiba Inu-inspired tokens surged to more than $60 million, a significant increase from the previous week's average of $25 million. The sudden rise can be attributed to the promotion of the Floki game through advertisements in various Chinese sporting events. This marketing strategy potentially lured speculators who speculated that it could attract a fresh wave of traders from China.
In a tweet, the Floki developers mentioned an increased presence of community members from China in their social media groups.
Floki's latest push to expand its user base for the Valhalla game involved a strategic focus on China, as previously reported. With the Chinese gaming market in mind, developers went the extra mile by ensuring that the game's content and technical documents would be available in both traditional and simplified Chinese. This targeted approach aimed to cater to the specific preferences and needs of Chinese gamers.
The rise of the "China narrative" on Crypto Twitter has led to an increase in the prices of certain Asia-focused tokens, like conflux (CFX), in recent weeks, as investors anticipate relaxed regulations for retail trading in Hong Kong.
As of June 1, Hong Kong is set to open its doors to traders, granting them the opportunity to invest in specific tokens such as bitcoin, ether, and solana through regulated exchanges. Although traders will be prohibited from holding stablecoins, this move has sparked widespread anticipation that wealthy Chinese speculators will soon channel significant capital into the crypto markets.
"While most major economies are expected to slow down this year, the Chinese economy is projected to grow strongly,” said Floki core developer @100bviking in a Twitter message to CoinDesk. “J.P. Morgan projects a 4% GDP growth for China in 2023; that's 2.5 times more than what is projected for the global economy and 4 times more than projected US economic growth.”
“This strong growth will spill over into crypto, especially with Hong Kong legalizing crypto in a few days' time which is a sign of China warming up to crypto. There is a very high probability that China will drive the next crypto bull run,” @100bviking added.
