Data shows social media attention has recently moved from Bitcoin and other major properties to meme-based tokens such as Dogecoin.
Dogecoin and other leading memecoins saw a spike in social dominance
In a new perspective PostOn-chain analytics firm Santiment talked about how social dominance has changed for various sectors recently. The “dominance of society” here refers to an indicator based on another metric known as the volume of society.
Society volume measures the total value of the discussion that a given topic or term on major social media platforms receives. This is done in terms of the number of posts containing at least one mention of the subject.
Today, social dominance, the actual measure of the connection to the current discussion, tells us what percentage of society volume related to the top 100 cryptocurrencies through the market cap being conquered by any given property or group of properties.
Here is the chart for the indicator shared by the analytics firm that shows its value for the three main sides of the sector in the last month:
Looks like two of the groups have seen the metric go down in recent days | Source: Santiment
As shown in the upper graph, Layer 1 and Layer 2 Top 6 both observed a sharp decline in their social dominance, indicating investors began to talk about them less.
'Layer 1' networks are the main blockchains that are not built on top of any other, such as Bitcoin and Ethereum. Networks that depend on another, such as the polygon, are called 'layer 2.'
While social media interest related to the six largest cryptocurrencies of these types recently faded, it went up for the third group: the Memecoin Top 6.
This focus on focus towards Dogecoin and Company has arrived because the rally rally is stuck for Bitcoin and other coins. This trend may indicate that investors can now look for gambling with more speculation -owned sector owners.
In other words, the fact that the dominance of the memecoin top 6 society jumped while Layer 1 and the property of Layer 2 lost its mind could be a sign of greed in the market.
Historically, the cryptocurrency market tends to move in the direction as opposed to the expectations of the majority. This means that when there is fear of investors, a bottom can be likely, while having greed can lead to a top.
In this point of view, Dogecoin and other memecoins who get attention at the moment can prove bad news for the digital asset sector as a whole.
Price of Doge
At the time of writing, Dogecoin floated around $ 0.178, up to 3% in the last seven days.
The trend in the Dogecoin price during the past five days | Source: DOGEUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from tradingview.com
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