Dogecoin & Other Memecoins No Longer Grabbing Social Media Attention: Santiment

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As a seasoned crypto investor with a few battle scars from the volatile rollercoaster ride that is this market, I can’t help but notice the shift in social media attention from memecoins like Dogecoin to Bitcoin and other layer 1 assets. It’s akin to watching a game of musical chairs, where the music stops, and everyone rushes to find a seat – only here, the seat is the hottest coin of the moment.

According to the analytics company, Santiment, there’s been a shift in focus among social media traders towards Bitcoin, as compared to Dogecoin and other meme-based cryptocurrencies, in recent times.

Dogecoin & Other Top Memecoins Have Seen A Decline In Social Dominance

In their recent update on platform X, Santiment discussed how the sentiment surrounding cryptocurrencies on social media has shifted during the recent bearish slump. The metric they’re focusing on is Social Dominance, which measures the proportion of conversations about the top 100 coins by market cap that a specific coin or group of coins is currently dominating in discussions at present.

This tool tracks the level of conversation surrounding a particular asset by tallying the total number of distinct instances where it’s mentioned, rather than simply counting the mentions themselves. The reason for this approach is to avoid misrepresenting the actual trend within the relevant industry, as raw mention counts can sometimes be deceptive.

By concentrating solely on individual posts, we ensure that singular, high-mention outliers won’t distort the data on their own. This way, the metric will only show a surge when the conversation is broadly distributed across multiple popular social media networks.

In our ongoing discussion, we’re focusing on the influence of two categories of digital assets: the Leading Six in Layer 1 and the Top Six Meme Coins. The first group encompasses the six most significant Layer 1 networks, which are self-sustaining and secure blockchains not built upon another network such as Bitcoin, while the second group consists of the six largest tokens based on meme culture, like Dogecoin.

Here’s a graph provided by the analytics company, illustrating the evolution of Social Influence for these two categories of digital currencies during the past several weeks:

According to the graph, the dominance of leading meme coins like Dogecoin and Shiba Inu on social media platforms was quite significant a fortnight ago, indicating that these tokens garnered considerable attention from users.

Over this time frame, this type of asset’s metric has generally trended downwards. It seems like more investors are now focusing on Bitcoin and other first-layer assets, given that their collective influence or popularity (social dominance) has grown significantly in the same duration.

Historically, when Dogecoin and similar meme-based cryptocurrencies garner significant market focus, it often indicates that investors may be showing signs of excessive greed.

It’s common for cryptocurrency markets to go against the prevailing predictions, so it might not shock anyone that a period of excessive optimism (greed) led to a decline in the sector.

Moving towards safer options such as Bitcoin suggests that investors are growing anxious. While it’s likely that the sector could continue to dip in the near future, the change in sentiment increases the likelihood that a low point will be reached.

DOGE Price

Currently, Dogecoin’s value is approximately $0.31 per coin, representing a drop of over 24% in the past week.

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2024-12-24 05:47