Data indicates that meme coins like Dogecoin are gaining significant attention on social media, which could impact Bitcoin’s performance.
Top Memecoins Experience Surge in Social Dominance
In a recent post on X, analytics firm Santiment discussed the upward trend in Social Dominance within various sectors of the cryptocurrency market.
Social Dominance measures the mindshare that a particular asset or group of coins have on major social media platforms.
The metric calculates the percentage of discussions related to the top 100 cryptocurrencies by market cap that a specific asset contributes to.
To determine Social Dominance, the indicator analyzes posts and messages on platforms like X, Reddit, Telegram, 4Chan, and BitcoinTalk, filtering for relevant keywords.
The metric counts posts containing at least one mention of the asset, rather than counting individual mentions, to prevent outliers from skewing the data.
Santiment shared a chart showing the changes in Social Dominance for three market segments over the past few months:
The chart compares the Social Dominance of layer 1 top six, layer 2 top six, and memecoin top 6 in the market. Layer 1 networks refer to primary blockchains like Bitcoin and Ethereum, while layer 2 networks are built on top of them. Memecoins include popular meme-based tokens like Dogecoin and Shiba Inu.
While layer 1 top 6 experienced a surge in Social Dominance due to Bitcoin’s new all-time highs, attention has shifted to memecoins recently. This high interest is driven by Dogecoin’s impressive rally, outperforming other assets in the sector.
Santiment notes that historically high speculative asset social dominance can indicate greed and emotional trading, which may lead to market tops. Shifting focus away from Dogecoin could be necessary for Bitcoin and other assets to sustain their bull run.
Current Dogecoin Price
As of now, Dogecoin is trading around $0.398, with a 2% increase in the last 24 hours.
Featured image from Dall-E, Santiment.net, chart from TradingView.com