As a seasoned crypto investor with battle scars from the 2017 bull run and the subsequent bear market, I can’t help but feel a sense of deja vu when I see Dogecoin surging while Bitcoin remains stagnant. The meme coin’s meteoric rise is reminiscent of the attention-grabbing antics of its predecessor, Bitcoin Cash, back in 2017.
In an unexpected move, Dogecoin has soared by 9%, setting itself apart from other cryptocurrencies in the market. However, if past trends are any indication, this could potentially pose challenges for Bitcoin.
Dogecoin Has Registered A 9% Jump During Last 24 Hours
Over the past day, while many cryptocurrencies have remained relatively stable in terms of their prices, Dogecoin has bucked the trend by experiencing a significant rise in value.
The below chart shows the trend in DOGE’s price over the past month.
Looking at the graph, it’s clear that Dogecoin has reached $0.134 during this surge and exceeded its height from last month. If this trend persists, Dogecoin might aim for a similar peak as it did in July.
Speaking about weekly gains, the recent surge places Dogecoin (DOGE) at over 24% increase, making it the leading gainer amongst the top 50 cryptocurrencies ranked by market capitalization.
Beyond Dogecoin, another meme-based cryptocurrency, Shiba Inu (SHIB), has also seen a surge in value. While Shiba Inu’s 5% increase might seem less noteworthy compared to Dogecoin’s rise, it’s important to note that both coins have been experiencing bullish trends lately.
This latest focus on meme coins may not be the best sign for the cryptocurrency sector as a whole.
Market Topped Out The Last Time Memecoins Got The Attention
Based on information from Santiment, the prominence of memecoins in social media conversations significantly increased when Bitcoin reached its peak over $68,000. “Social Dominance” in this context refers to a metric that measures the proportion of discussions about the top 100 cryptocurrencies on social media platforms that are currently focused on a specific coin or asset group.
Here’s a graph displaying the relative social influence of the leading 6 Layer 1 assets versus the leading 6 meme coins over the past period:
According to the graph, the social influence of meme coins increased significantly when Bitcoin and other cryptocurrencies were on the rise. This could imply that more investors began to take notice of these investment options seen as speculative.
It turns out that my fascination with meme coins happened at a time when the market was reaching its peak. As analysts from the firm explain, “Markets tend to experience corrections as attention moves from Layer 1’s to more speculative assets because of growing greed.
Over the last day, Dogecoin and Shiba Inu have been outpacing other investments, suggesting that investors’ enthusiasm remains elevated. This could signal further downward pressure on Bitcoin and other leading assets.
Based on the graph, it appears that the market typically finds a low point when focus returns to Layer 1 networks. Therefore, if the current trend is to persist, a similar shift might be necessary again.
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2024-10-19 08:46