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Key TakeawaysElon Musk’s Shiba Inu dog, Floki, “returns as CEO” of X in a new post.The Floki memecoin (FLOKI) spiked 28.8% shortly after the post.Musk’s influence over memecoin markets remains strong despite volatility.The memecoin sector lost nearly 40% of its market cap after the Oct. 10 crash.Elon Musk once again sparked a frenzy in the memecoin market after posting a lighthearted video of his pet Shiba Inu, Floki, on his social platform X (formerly Twitter).On Monday, Musk shared that Floki was “back on the job” as CEO of X, accompanied by an AI-generated video showing the dog wearing glasses and a tie, muttering:“Numbers, numbers, numbers? Is this working? Yay.”The post sent the Floki (FLOKI) token soaring 28.8%, jumping from $0.00006572 to $0.00008469 before correcting slightly to $0.00007998, according to CoinGecko.The move underscored Musk’s ongoing influence on speculative crypto assets. Despite repeated market corrections, the billionaire’s social posts continue to drive sharp, short-lived rallies in meme-based cryptocurrencies.Musk’s History With MemecoinsThis is far from the first time Elon Musk has influenced memecoin prices. His playful references to Dogecoin (DOGE) during the 2021 bull run famously helped push the token from fractions of a cent to nearly $0.73.In 2022, Musk faced a class-action lawsuit accusing him of manipulating Dogecoin’s price through his social media activity. The lawsuit was withdrawn in November 2024, but Musk’s impact on the memecoin space has persisted.Memecoin Market Still Recovering From October CrashWhile Floki’s surge brought brief optimism, the broader memecoin sector remains under pressure. According to CoinMarketCap, the category’s total market capitalization plunged nearly 40% during the October 10 crypto crash, dropping from $72 billion to $44 billion.The crash wiped out three months of gains, sending prices back to July levels. Although partial recovery followed, another sell-off on October 18 erased an additional 9–11% of market value amid heightened fear and a $230 billion drawdown across the crypto market.