Memecoins
Dogecoin and other memecoins attract less interest than Bitcoin: data
Data shows that social media users are currently not paying much attention to memecoins like Dogecoin (DOGE) compared to Bitcoin (BTC) and other large caps.
Bitcoin and other large-cap tier 1s are currently attracting all the attention of investors
According to data from the analytics company SantimentSocial media users are more focused on top layer 1 assets compared to memecoin and other sectors. The relevance indicator here is the “Social domination”, which is based on another measure called social volume.
THE Social volume basically tells us how much discussion a given topic or term is generating on major social media platforms. The metric does this by counting all posts/threads/messages that make at least one mention of the keyword.
The reason the metric doesn’t simply count mentions is that a few posts with a large number of mentions can’t skew the value on their own. When social volume increases, it means that social media users are talking about the term and not just niche circles.
Now, social dominance, the actual metric we’re interested in here, tracks the percentage of the combined social volume of the top 100 cryptocurrencies by market cap that a given coin or group of coins currently occupies.
Below is the chart shared by the analytics firm that shows the social dominance trend for four industry segments over the past month:
As the chart shows, the social dominance of the top 6 Layer 1 assets has recently been the highest in the industry.Layer 1Networks refer to blockchains that manage their own security and are not built on top of another network. Networks built on top of these primary chains are called Layer 2.
Some of the top Layer 1 cryptocurrencies are Bitcoin, Ethereum (ETH), and Solana (SOL). While these Layer 1 cryptocurrencies are currently the talk of the industry, that wasn’t the case earlier this month.
At the time, other segments of the sector were getting more attention. The chart shows that top layer 2 coins like Polygon (MATIC) and the most popular meme coins like Dogecoin were the subject of notable discussions on social media.
While this means that investors are not currently interested in assets like Dogecoin, the focus on Bitcoin and other large caps could actually be a bullish development for the sector as a whole.
“Continued crypto rally most often occurs when the focus is on larger caps (a sign of caution) rather than more speculative assets (a sign of greed),” Santiment explains.
Dogecoin Price
At the time of writing, Dogecoin is trading around $0.129, down more than 4% from last week.
Featured image by Dall-E, Santimnet.net, chart by TradingView.com