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

The analytics firm Santiment has revealed how social media traders have moved their attention to Bitcoin from Dogecoin and other memecoins recently.

Analytics firm Santiment has revealed how social media traders have moved their attention from Dogecoin and other memecoins to Bitcoin in recent times.

Dogecoin & Other Top Memecoins Have Seen A Decline In Social Media Presence

In a new post on X, Santiment has discussed how cryptocurrency market sentiment on social media has changed amid the latest bearish downturn. The indicator of relevance here is the Social Dominance, which keeps track of the percentage of social media discussions related to the top 100 coins by market cap that a particular asset or group of assets is contributing at the moment.

The indicator measures the degree of discussion or talk related to an asset by counting up the number of posts that are making unique mentions of it. The reason it doesn’t count up the mentions themselves is that they can provide a false picture of the trend being followed in the sector.

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Focusing on just the posts means that a few outlier ones with hundreds of mentions can’t skew the data by themselves and the metric only registers a spike when discussion is spread across the major social media platforms.

In the context of the current topic, the Social Dominance of two asset classes is of interest: the Layer 1 Top 6 and the Memecoin Top 6. The former includes the six largest layer 1 networks (that is, blockchains that handle their own security and aren’t built on top of another network, like Bitcoin) and the latter the six largest meme-based tokens (like Dogecoin).

Here’s a chart shared by the analytics firm that shows the trend in the Social Dominance for these two types of cryptocurrencies over the last few weeks:

As you can see from the above graph, the Memecoin Top 6’s social dominance was high a couple of weeks ago, suggesting that Dogecoin, Shiba Inu, and other such tokens were garnering a lot of interest from social media users.

Since then, however, the metric has shown an overall downtrend for this class of assets. It would seem that investor attention has shifted to Bitcoin and other layer 1 assets, as their combined social dominance has risen during the same period.

Historically, whenever Dogecoin and other memecoins have been at the center of attention in the market, it has been a sign that the investors are becoming greedy.

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Given that cryptocurrency markets usually trend against the expectations of the majority, it may not come as a surprise that this greedy sentiment was followed by a downturn in the sector.

The shift in Social Dominance to safer investments like Bitcoin would now imply that the investors are getting fearful. It’s possible that the sector would continue to decline in the coming days, but at least with the sentiment seeing a flip, there is more of a chance that a bottom can be reached.

DOGE Price At The Moment

At the time of writing, Dogecoin is trading around $0.31, down more than 24% over the last seven days.