x402 protocol is booming! PING token pumps 18 times, US exchange creates AI payment standard

x402 is an open-source payment protocol launched in May 2025 by the first compliant exchange in the United States, designed based on the HTTP protocol's 402 Payment Required status code, providing decentralized payment solutions for AI Agents. Cloudflare established the x402 Foundation, and Google incorporated it into the AP2 protocol.

What is x402? The last mile of AI payment

x402 is an open-source payment protocol launched by the first compliant exchange in the United States in May 2025. This protocol is based on the HTTP protocol (the underlying rules for web operation) and utilizes the “402 Payment Required” status code, hence it's called x402. Simply put, x402 is essentially a payment channel/interface, similar to Alipay payments.

But x402 is specifically designed for AI. For instance, if AI wants to purchase data, computing power, or API services, it can pay directly, saving a lot of intermediate steps. If you want to receive RMB, you have to connect to Alipay; if you want to receive USD, you can connect to PayPal or Stripe; if you want to receive USDT or USDC, you can connect to x402. The difference between x402 and PayPal is that Alipay and Stripe belong to centralized payment gateways, whereas x402 is a decentralized payment system, and the money received goes directly into your own web3 wallet.

To understand the positioning of x402, we need to start from the large arena of stablecoin payments. With the penetration of stablecoins, stablecoin payments have also emerged and exploded. Overall, they can be divided into three categories: B2B enterprise-level payments for clearing and settlement between institutions, C2C peer-to-peer transfers between individuals, and C2B payment purchasing scenarios from individuals to merchants. Currently, stablecoin payments are mainly unfolding in the above three scenarios, but there is also a potential market with huge space: AI payments.

What is the major trend? The future is the era of intelligence, where everything will be integrated with AI. AI Agents will become essential tools for each individual and even businesses. In the future, almost all C-end consumption and B-end settlements can be automatically executed by AI Agents. So, based on this ultimate state, what is one capability that AI Agents currently lack? It is actually payment.

To know, in our traditional world, payment must require real-name KYC, and a “identity” is necessary to open a bank account and then make payments. An AI Agent is a virtual entity; how could it possibly open an account and make payments? At this point, the emergence of stablecoin payments just fills this gap. Blockchain is decentralized, and stablecoin payments based on blockchain allow AI Agents to directly create addresses on the chain, equivalent to “opening a bank account,” and use stablecoins for free transfers, realizing value flow.

x402 Solving the Four Core Issues of AI Autonomous Payments

In today's rapidly developing AI landscape, AI Agents face a significant problem: AI, resembling a super-intelligent assistant, wants to look up information, use APIs, and purchase computing power, but it cannot log into websites, enter passwords, or use credit cards like a human. Traditional payment methods (credit cards, PayPal) are too slow and complicated, charging 2 to 3% in fees, which is not suitable for the “micro-payments” (a few cents to buy data) needs of AI.

The Four Core Issues Solved by x402:

AI Autonomous Payment: AI can directly pay for services like a human, for example, using 1 USDC to access a weather API, eliminating human intervention.

Micro Payment Dilemma: Traditional payment transaction fees are high (credit cards charge 2% per transaction), while x402 uses Base chain and only charges extremely low gas fees (a few cents), making it suitable for small transactions.

Simplified Process: No registration or verification needed, x402 makes payments as simple as sending a message, HTTP native, developers can integrate with just a line or two of code.

Globally Accepted: Use stablecoins (such as USDC), usable worldwide, with no worries about exchange rates.

x402 can be said to be the “last mile” of AI payment. This metaphor precisely describes the value of x402: other capabilities of AI (language understanding, decision-making, execution) are already mature, but it lacks the ability for autonomous payment. x402 fills this critical gap, enabling AI Agents to operate truly autonomously without human intervention each time a payment is needed.

The core of x402 is to embed payment into the HTTP protocol (the language of web pages) and settle it using blockchain (mainly the Base chain). It sounds complicated, but it’s just like adding a “pay button” for web pages. The HTTP 402 status code website says, “Want to see the content? Pay first!” Back to the 402 status, it tells you how much to pay (for example, 1 USDC) and where (on-chain address). Blockchain payments are signed payments using digital wallets (like MetaMask), and the money flows directly through the Base chain (Ethereum's Layer 2, which is cheap and fast).

In terms of open source protocols, x402 is publicly available code (available on GitHub), which any developer can use, similar to a “free blueprint” for adding payment functionality to websites. The stablecoin payment is driven by USDC (1 USDC = 1 USD), stable and non-volatile, universally accepted worldwide. Simply put, x402 is like having a “Alipay QR code” installed on a webpage, where AI can scan and pay automatically, and the website immediately provides the AI with the goods.

x402 Why did it suddenly explode in October? Three major catalysts

x402 was just a niche project in the developer community when it was released in May 2025, but suddenly “exploded” in October. There are three core reasons. First is the endorsement from major companies. On October 17, Cloudflare established the “x402 Foundation,” essentially giving x402 an “official certification.” Cloudflare's servers began to support x402 transactions, meaning all global websites could use it. Google incorporated x402 into the AP2 protocol (AI agent standard), and AWS, Anthropic, Circle, and others also joined, indicating that tech giants collectively have confidence in it.

Secondly, there is a surge in demand for AI payments. In 2025, AI agents (like robots that automatically buy data) will experience a boom, and x402 will perfectly solve their payment needs. With the popularization of ChatGPT, Claude, and various AI Agent platforms, the scenarios where AI needs to access external data and services are skyrocketing. Traditional API calls require developers to manually configure payments, while x402 enables AI to autonomously decide whether to make a purchase and complete the payment, truly achieving “financial autonomy for AI.”

The third is the meme coin craze. Many merchants have not yet integrated, so what can users buy? The simplest option is to sell tokens! Users pay with USDC stablecoins, and the project team gives you tokens (which are actually just air coins), turning this into a new token issuance method!$PING The first presale, 1 USDC mints 5,000 tokens, with a market value once exceeding 30 million USD, rising 18 times! This wave of speculation made x402 a hot topic. In short, x402 is currently being focused on as a token issuance method.

Although the hype around this Meme coin deviates from the original vision of x402 (AI payment infrastructure), it has brought tremendous attention and a user base to the protocol in the short term. Many people first heard about x402 because of the wealth effect of $PING , and then began to understand the technology and vision behind it. This “first attract attention, then educate users” approach is not uncommon in the crypto space.

x402 Operation Process: Four Steps from Request to Payment

Take a practical example, suppose you (or AI) want to buy weather API data with x402. The first step is to initiate a request; you (or AI) visit a weather website to check the weather in Shanghai for tomorrow. The second step is that the website responds with “402”, stating “The data costs 1 USDC”, returning an HTTP 402 status code along with payment details (amount, receiving address).

In the third step, you pay by clicking on the MetaMask wallet to sign and pay 1 USDC, and the transaction is confirmed on the Base chain, with gas fees costing only a few cents. In the fourth step, you receive the data, and the website verifies that the payment has been received, instantly providing you with the weather information (for example, “Shanghai, 25°C, Sunny”). The entire process abstracted: Send request → Informed to pay → Payment → Retry request → Obtain resource.

The elegance of this process lies in its complete automation and the absence of human intervention. The AI Agent can automatically pay for resources that require payment during the execution of tasks and continue its operation, just as naturally as a human clicking the “buy” button on a webpage. This seamless experience is a key infrastructure for AI autonomy.

From the perspective of token issuance, x402 has created a new ICO model. The first step is the x402 protocol trigger, where users click “Fetch Mint” on x402scan, initiating an HTTP request that the server returns with the HTTP 402 status code (“Payment Required”), along with payment details (1 USDC, recipient address) for the user to sign and pay using MetaMask. The second step is smart contract execution, where the project party (such as $PING) deploys a contract on the Base chain, setting rules: upon receiving 1 USDC, mint 5,000 tokens to the user's wallet. x402scan integrates these contracts, and after the user makes the payment, the contract automatically executes, distributing the tokens to the wallet. The third step is on-chain confirmation, where the Base chain verifies the transaction tokens, which can be traded on Uniswap. x402scan records the transaction in real-time, ensuring transparency.

In simple terms, x402scan is the “Taobao page,” x402 is “Alipay,” the smart contract is the “seller's shipping system,” and the minted tokens are the “goods for sale.” This analogy makes the complex technical process easier to understand.

x402scan and Popular Token Ecosystem

x402 is not just a protocol; it also has an ecosystem, with the core tool being x402scan. Similar to Etherscan, it is a blockchain explorer specifically for recording payments and resources of x402, such as who is using x402 and what they have purchased. Core features include checking transactions to view payment records, USDC flow, popular APIs, trying resources with 1 USDC to experience x402 payments and also mint tokens (like $PING), as well as an ecosystem overview listing popular projects.

These tokens were issued during the x402 hype, but their volatility is like a roller coaster. $PING is the leading meme coin of x402, on the Base chain, with 1 USDC minting 5,000 tokens, and its market cap once reached 30 million USD, rising 18 times. $SANTA is related to AI agents, in the Virtuals ecosystem, with 1 USDC minting, and its market cap is doubling. $PAYAI is a Solana cross-chain, with AI payment narratives, and the community is hot. $GLORIA is x402 information AI, recently doubling in price. These tokens are mostly speculative, with weak fundamentals, like buying a lottery ticket, potentially making a lot of money or going to zero.

The participation method is very simple. Everyone can go to the x402scan website, find a resource (for example, $PING), click “Try Resources” → “Fetch Mint”. Pay 1 USDC, sign to confirm, and the tokens will be credited (like buying game skins). If you want to trade, you can sell on Uniswap (Base chain), and be mindful of slippage (5 to 10%).

x402 Long-term Value: Web3 Payment Standards

The potential of x402 lies in making payments for AI and applications as ubiquitous as sending emails. In the short term, it is still in a hype phase, with everyone attracted by the wealth effect of meme coins in the x402 ecosystem. However, with funding and market attention, the development of this sector will accelerate.

In the long term, as more websites support x402, AI agents will use it to purchase data and computing power, which will become widespread with the AI boom. This protocol could potentially become the Web3 payment standard, similar to the role of HTTPS in Web2. If you believe in the prospects of stablecoin payments and the future of AI agents, then this sector must be taken seriously.

On October 17, Cloudflare established the x402 Foundation, which is a key step towards the standardization of the protocol. The establishment of the foundation means that x402 is no longer just a single project of the first compliant exchange in the United States, but an open industry standard. The participation of Google, AWS, and Anthropic further solidifies this position. When tech giants collectively support a protocol, the probability of it becoming an industry standard significantly increases.