On Sunday, the token Floki (FLOKI) experienced a surge of over 10% and recorded its highest trading volumes in more than three weeks. This increase in activity can be attributed to traders speculating on the token due to its association with the China-focused Valhalla metaverse game. Shiba Inu-themed token trading volumes surged to over $60 million, surpassing the previous week’s average of $25 million. This increase coincided with the inclusion of ads for the Floki game in Chinese sporting tournaments.
Growing “China Narrative” Impacting Crypto Market
Speculators speculated that this development could attract new traders from China, which could explain the heightened interest. Floki developers noticed an increase in Chinese community members on their social media groups.
Floki aimed to target China in its efforts to attract more users for its Valhalla game. The game’s content and technical documents will be made available in both traditional Chinese and simplified Chinese, specifically catering to the Chinese gaming market, as stated by the developers.
The “China narrative” has gained traction on Crypto Twitter due to relaxed regulations for retail trading in Hong Kong. This narrative has resulted in price increases for some Asia-focused tokens, including conflux (CFX).
Floki Developer Anticipates Robust Growth in the Chinese Economy
Hong Kong will permit traders to invest in tokens like Bitcoin, ether, and Solana through regulated exchanges from June 1. However, regulators will not allow traders to hold stablecoins. This development has sparked speculation that affluent Chinese speculators may soon enter the crypto markets.
Floki core developer @100bviking expects robust growth in the Chinese economy while other major economies experience a slowdown. J.P. Morgan has projected a 4% GDP growth for China in 2023, which is 2.5 times higher than the projected global economic growth and 4 times higher than the projected economic growth of the United States.
China’s economic growth and Hong Kong’s crypto legalization signal increasing acceptance of cryptocurrencies and positively impact the market. He predicts China will lead the next crypto bull run, citing a high probability of their involvement.
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