Is Dogecoin (DOGE) About to Cash in on Elon Musk's New Payments System?

X, the social media platform formerly known as Twitter, has indicated plans to launch a payment-processing platform this year.

Dogecoin (DOGE 10.55%) had a big week of gains as a new potential catalyst for the meme coin emerged.

Here's what happened

Dogecoin price was up 14.6% over the last 24 hours as of 6:15 p.m. ET Friday. Meanwhile, Bitcoin was up 1.6% over the stretch, and Ethereum was up 5%.

The crypto market saw bullish momentum on Friday, but there's also a major coin-specific catalyst for Dogecoin's gains. Investors are betting that X's new payments system will be launching soon and that Dogecoin could be incorporated into the platform.

Payments, crypto, and Dogecoin

X, the social media platform formerly known as Twitter, has indicated plans to launch a payment-processing platform this year. The company is owned by Tesla CEO Elon Musk, who has been Dogecoin's most high-profile supporter.

Recently, leaked source code supposedly from X's new payments service was posted online by MacRumors. While there's no official indication as to whether the code is actually from the upcoming payments platform, the alleged leak has boosted excitement for the service and cryptocurrencies that could be supported.

Thus far, there's no clear indication whether Dogecoin will be integrated into the X payments network. But that hasn't stopped a swell of bullish momentum for the popular meme coin.

What now

Dogecoin is currently the world's most valuable meme coin. With a market cap of roughly $56.5 billion, it stands head and shoulders above other similar tokens in the category. It also ranks as the world's seventh-largest cryptocurrency by market cap.

As a token that primarily functions as a speculative investment and payment mechanism, Dogecoin's valuation is closely tied to adoption trends and overall market momentum. If X's payments system were to integrate the token as one of the primary supported cryptocurrencies, it could open the door for substantial valuation gains.

Musk has already shown support for the token, and such a scenario is a realistic possibility. On the other hand, investors should move forward with the understanding that there are no guarantees that Dogecoin will be supported on X's payments platform — and the token remains a risky and highly speculative play.