The analytics company Santiment has revealed how social media traders have recently shifted their attention from Dogecoin and other memecoins to Bitcoin.
Dogecoin and other top Memecoins have seen a decline in social dominance.
In a recent post on X, Santiment discussed how cryptocurrency market sentiment on social media has changed in the context of the latest price downturn. The relevant index here is Social Dominance, which tracks the percentage of social media discussions related to the top 100 coins by market capitalization that a specific asset or group of assets is contributing right now.
This index measures the level of discussion or talk related to an asset by counting the number of posts that uniquely mention that asset. The reason this index does not count the mentions themselves is that they can provide a misleading picture of the trends being followed in this area.
Focusing only on posts means that a few exceptional posts with hundreds of mentions will not be able to skew the data, and this metric only records a spike when discussions are spreading across major social media platforms.
In the context of the current topic, the social dominance of two types of assets is being focused on: the Top 6 layer 1 and the Top 6 Memecoins. The former includes the six largest layer 1 networks (i.e., blockchains that secure their own network and are not built on another network, like Bitcoin) and the latter includes the six largest meme-based tokens (like Dogecoin).
Below is the chart shared by the analytics company, showing the social dominance trends of these two cryptocurrencies over the past few weeks:
As shown in the chart, the Social Dominance of the Top 6 Memecoins was high a few weeks ago, implying that social media users were very interested in Dogecoin, Shiba Inu, and other similar tokens.
However, since then, this index has followed a generally downward trajectory for this type of asset. It seems that investors' attention has shifted to Bitcoin and other layer 1 assets, as their combined social dominance has increased during the same period.
Traditionally, whenever Dogecoin and other memecoins become the focal point of attention in the market, it is a sign that investors are becoming greedy.
The cryptocurrency market often tends to move contrary to the expectations of the majority, so it is no surprise that this greedy sentiment has led to a downturn in this sector.
The shift of Social Dominance to safer investments like Bitcoin would imply that investors are currently becoming fearful. It is likely that this sector will continue to decline in the coming days, but at least with the reversed sentiment, there is a higher chance that the bottom will be reached.
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