The VINE token saw a staggering 46% price increase after Elon Musk announced the revival of Vine, this time, with a new AI twist.
In a post on X that quickly racked up over 20 million views, Musk stated, “We’re bringing back Vine, but in AI form.”
The reaction was immediate and sparked a wave of excitement in the crypto sphere. However, the announcement was also met with a sort of skepticism.
Notwithstanding, the fact that Musk’s name was involved was enough to send traders and speculators into overdrive, causing a frenzy of VINE token activity.
Speculation Involving Vine Founder Rus Yusupov Fuels Hype
Adding more fuel to the fire was a rediscovered tweet by Vine co-founder Rus Yusupov, who had just days before Musk’s announcement tweeted: “Imagine a feed of short viral AI videos.”
After the news, Yusupov retweeted his original tweet, fueling speculation that he would be involved in the new Vine project.
But there has been no confirmation from the official side of Yusupov’s work with Musk’s AI-fueled version of Vine.
Yusupov launched a VINE memecoin earlier this year, not associated with any product, which spectacularly rose to a $480 million market cap before falling to just $25 million.
While his previous association with Vine is a matter of record, his association with this new version remains rumor and speculation.
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VINE Token Market Cap Recovers as Traders Bet on Hype
Following Musk’s AI-Vine announcement, the market capitalization of the VINE token recovered firmly from its recent downtrend, coming back to the vicinity of $58 million.
The token is now exchanging hands at $0.05367 with a 24-hour trading volume of more than $337 million, up 41.08% in a day, and 40.71% up in the past week.
With a total supply of 1 billion VINE tokens in circulation, the asset remains speculative at this juncture.
Interestingly, there has been no announcement that the VINE memecoin is officially associated with Elon Musk’s revived Vine project. As a result, many suspect the rally may not last long if official affiliations are not established.
Skepticism Grows Over Rally Longevity and Substance
While the market responded swiftly to the hype, analysts and community members are cautious.
There is a chance that xAI, Elon Musk’s AI firm, could develop a Vine competitor without Yusupov or any connection to the existing VINE token, meaning the ongoing price rally could be based on shaky grounds.
Since the short-video and social media space is already saturated, being “first” with AI-generated videos may not be enough for long-term success.
The chart of the VINE token shows the traditional hype curve: an almost vertical run-up then a moderate correction as reality tempers expectations.
Whether this rally is the beginning of sustained growth or another memecoin pump-and-dump remains to be seen.
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