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

Author: Content Editor
Santiment, an analytics firm, discusses the changing market sentiment in the cryptocurrency industry due to the recent bearish trend. It focuses on the indicator called Social Dominance, which measures the percentage of social media discussions related to the top 100 coins by market cap contributed by a particular asset or group of assets. The indicator analyzes the number of posts making unique mentions instead of counting the mentions themselves to avoid misleading trends. The post highlights two asset classes: Layer 1 Top 6 (the six largest layer 1 networks) and Memecoin Top 6 (the six largest meme-based tokens). The graph shared by Santiment shows that the Social Dominance of Memecoin Top 6 has decreased over the past few weeks, while the dominance of layer 1 assets has increased. This shift suggests that investor attention has moved towards safer investments like Bitcoin. Historically, when memecoins like Dogecoin were popular, it indicated investor greed, which was often followed by a downturn in the market. The change in sentiment towards safer assets may signal fear among investors, and there is a possibility of further decline in the cryptocurrency sector. At the time of writing, Dogecoin's price has declined by more than 24% in the last seven days, currently standing at $0.31.

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