Dogecoin And Shiba Inu Social Dominance At 5-Month High — Can FOMO Stall Price Growth?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market trends and fads, from the Dot-com bubble to the crypto craze of today. The past week has been no exception, with blue-chip cryptocurrencies like Bitcoin and Ethereum, as well as meme coins such as Dogecoin and Shiba Inu, making headlines due to their impressive performance.

For the past week, Bitcoin (BTC) and Ethereum (ETH), along with other high-value assets within the cryptocurrency market, have garnered significant interest due to their impressive performance. Similarly, meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have been in the limelight over the past seven days.

Based on recent analysis of online activity associated with cryptocurrency transactions, Dogecoin (DOGE) and Shiba Inu (SHIB) have been dominating discussions among crypto enthusiasts for the past few days, particularly following price surges. Here’s a look at how increased social buzz might influence the value of these two popular coins.

Will FOMO Sustain The Meme Coin Rally?

Over the last few days, I’ve noticed a significant surge in social media buzz surrounding large-cap meme tokens, as shared by Santiment on the X platform. According to the insights from the blockchain analytics firm, popular meme coins like Dogecoin and Shiba Inu have been generating their highest level of crowd discussion since May.

This analysis stems from the Santiment Social Influence indicator, which quantifies the proportion of conversations about a specific cryptocurrency or term within the crypto media sphere. According to their recent post on topic X, this metric was utilized.

The popular meme tokens such as DOGE, SHIB, and others are currently generating the highest level of public discourse since May. This heightened conversation could potentially trigger a fear of missing out (FOMO) among the masses, causing prices to surge.

It seems that the change in investors’ optimism towards meme coins could indicate restored confidence in this market. But, it’s important to be aware that growing excitement among the crowd may forewarn a peak in prices because heightened fear of missing out can slow down the progress of rising price surges.

The anxiety of not being part of profitable investments, often abbreviated as FOMO (Fear Of Missing Out), occurs when investors impulsively buy assets that are popular due to fear of losing out on potential profits. While FOMO can momentarily boost an asset’s value, overly aggressive FOMO behavior usually results in unstable price increases followed by corrections.

Additionally, it’s often observed that cryptocurrency prices typically fluctuate in a manner contrary to popular sentiment. So, given the level of interest the public is showing towards popular meme coins, potential investors should exercise caution when approaching the market.

As an analyst, I found it intriguing that Santiment highlighted Layer 2 tokens such as Arbitrum and Optimism as promising investment options due to their minimal social dominance. In other words, these tokens are relatively less known or popular, which could make them potentially lucrative. Historically, it seems that investing in less crowded areas can yield returns, as the on-chain firm stated, “Speculative coins may still experience short-term growth, but history shows that it’s beneficial to invest where fewer people are looking.

Dogecoin Price At A Glance

Currently, the value of Dogecoin has surpassed $0.14, marking a nearly 6% growth over the previous 24 hours.

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2024-10-19 12:04