Understanding the Resilience of the x402 Protocol Beyond PING Hype

Why the x402 protocol didn’t fade after the PING hype, and what’s driving the second wave

The x402 protocol is demonstrating significant staying power, emerging as a practical solution for pay-per-use services on the internet. While PING circulated interest in x402, the real narrative is its adoption in infrastructure through collaborations with major players like Coinbase and Cloudflare. This article explains what x402 is, how it works, and why it is generating momentum.

Key Takeaways:

The x402 protocol allows users to pay for services on the internet as they use them.
Current momentum is driven by significant infrastructure support from Coinbase and Cloudflare.
Although PING generated initial excitement, the focus is now on widespread protocol adoption.
Users can easily try the x402 protocol by creating an endpoint and testing the payment process.

The Basics of x402

The x402 protocol offers a straightforward method to facilitate pay-per-use services online. When you attempt to access a paid application programming interface (API) or digital content, the server responds with the “402 Payment Required” message. This message specifies the fee, typically just a few cents in USDC.

To proceed, you send the payment from your crypto wallet, resend the request, and the server will then deliver the desired information. This process eliminates the need for accounts, passwords, or monthly subscriptions, relying instead on a one-time transaction linked to that specific request.

The Emergence of the “Second Wave” for x402

Even though the 402 status code has been part of HTTP for years, it only gained a structured format with the introduction of the x402 protocol by Coinbase in 2025. Coinbase provided documentation and code, along with a managed gateway for developers. This framework was bolstered when Cloudflare teamed up with Coinbase to launch the x402 Foundation, which set the standard and integrated x402 into mainstream developer tools.

You might recall x402 being highlighted by the token PING. While the initial hype around PING has cooled, the protocol has persisted due to its unique capability to charge users per API call, AI inference, or download without requiring them to set up accounts. This practicality, combined with innovative tools for AI agents that can make payments automatically, is driving renewed interest in real-world usage rather than just market prices.

AI Agents are Adopting x402 Did you know? X402 is becoming the go-to method for AI agents to handle payments autonomously. Cloudflare is incorporating support for x402 within its Agents SDK and MCP servers, while Coinbase’s new Payments MCP enables popular large language models to manage wallets and fulfill requests without needing API keys.

The Connection: PING Token and x402 Protocol

PING is a memecoin created on Base, Coinbase's layer 2 solution. It was the first public token mint conducted via an x402 flow, making it newsworthy. Early adopters didn't join a website; they visited a specific URL, received a "402 Payment Required" response, paid a small USDC fee on-chain, and upon retrying the request, received their PING tokens. This process effectively demonstrated the pay-per-use model of x402 in action during the minting of the token.

Launched by the X account Ping.observer, PING was notably highlighted in public coverage. However, there is no detailed team page or white paper, nor any verifiable backing from venture capital specifically for PING.

While x402 provided the underlying infrastructure, PING acted as its primary large-scale use case. This token's minting method tested the protocol's capability of charging minimal fees per request, encompassing API calls, AI inferences, and file downloads—all without the hassle of accounts or API keys.

Following the initial hype, the real takeaway wasn't the token's price movements but the surge of developers exploring and utilizing the x402 protocol.

PING Performance Did you know? PING peaked at around $0.0776 on October 25, 2025, before experiencing a price drop in the subsequent days.

Getting Started with x402 for Developers

Using x402 is fairly simple. You initiate a request to a paid URL, and the server sends back a “402 Payment Required” message along with the fee in USDC. After making the payment on-chain, you resend the request with the proof of payment to receive the result.

Managed Solution: Utilize Coinbase’s hosted x402 gateway, which includes dashboards and Know Your Transaction (KYT) checks, making it perfect for quick proofs of concept.
DIY Approach: You can also clone the open-source x402 reference implementation to set up your own minimal seller and buyer locally for greater control.

You can choose a path (e.g., “/inference”) for your query. If someone accesses that path without making a payment, configure the server to return a “402” response, detailing the payment structure: the amount, asset (USDC), destination address, and expiry. If you can trigger this response using “curl,” you’re effectively utilizing the x402 protocol.

Using either a sample client or the managed gateway, you will detect the “402,” complete the on-chain payment, and then retry the request. Access will automatically adjust once the payment is confirmed—no accounts, API keys, or OAuth credentials are necessary.

If you’re engaging with agents, set up the model context protocol (MCP) to allow automatic payments from the agent's wallet and reissue requests seamlessly—a quick method to test agent-to-endpoint interactions.

Tip for Developers: Start experimenting on a testnet as outlined in the quickstart guide. Once the 402 → pay → grant loop is functioning correctly, transition to the mainnet for real-world applications.

Monitoring x402's Development: Risks and Opportunities

As x402 is still in its early phases, the specifications and reference code may continue to develop. Most existing implementations currently utilize USDC. Relying heavily on one managed gateway or single asset can present vendor and asset concentration risks, which is why it’s crucial to distinguish between token narratives and the protocol's progress.

Keep an eye out for official announcements regarding the x402 Foundation, including its charter, membership, and roadmap—an event that signifies x402's evolution from a product to a standard. Additionally, observe Cloudflare’s developer ecosystem (Agents SDK and MCP), as mainstream tools often pave the way for broader adoption.

Look for genuine endpoints returning “402” responses with payment details that grant access upon on-chain payment, all without account or API key prerequisites. An increase in quickstarts, documentation, and GitHub activity indicates positive movement in the protocol’s usage and accessibility.

Wider distribution across cloud services, Content Delivery Networks (CDNs), and agent frameworks will make x402 increasingly significant. Further advancements in “agentic commerce” integrations are likely to attract developers new to the crypto space.

Stay updated by following primary sources like Coinbase’s product pages, their documentation, and GitHub for protocol updates. For news related to the foundation, track Cloudflare’s blog and press releases. Be cautious of information outside these sources, especially speculative discussions about tokens, as they might not accurately reflect the protocol's real progress.