Data shows that Dogecoin and other meme coins are getting significant attention on social media, a sign that may not be ideal for Bitcoin.

Top 6 Memecoins That Have Seen Their Social Dominance Soar Recently

In a new post on X, analytics firm Santiment discussed the social dominance trends for several different segments of the cryptocurrency sector.

“Social dominance” here refers to an indicator that basically tells us about the level of interest in a particular asset or a group of coins on major social media platforms today.

More formally, the value of this metric is calculated as the percentage of discussions involving the top 100 cryptocurrencies by market capitalization that a given asset is making up.

To determine this, the indicator will collect posts/threads/messages that are present on five platforms: X, Reddit, Telegram, 4Chan, and BitcoinTalk. It will then filter them according to the keyword in question.

Note that to measure “discussion,” the metric simply counts posts that have at least one mention of the asset, rather than counting the mentions themselves. The advantage of this approach is that outlier posts with hundreds of mentions do not skew the data.

Here's a chart shared by the analytics firm showing how social dominance has changed across three market segments over the past few months:

The three segments mentioned are the top 6 layer 1, the top 6 layer 2, and the top 6 memecoins. “Layer 1” networks refer to major blockchains that handle their own security, like Bitcoin and Ethereum. Networks like Polygon that are built on these chains are called “layer 2.” Memecoins, of course, refer to popular meme-based tokens, like Dogecoin and Shiba Inu.

From the chart, it is clear that the Social Dominance of the top 6 layer 1 has skyrocketed in the past few days due to Bitcoin setting many new record highs (ATHs).

Since then, BTC has continued to hit new highs, but it seems that the focus of social media users has shifted elsewhere as the social dominance of the layer 1 giants is slowly fading.

This index has remained relatively low for layer 2 coins throughout this period, implying that traders have not shown much interest in them recently. The assets that have attracted all the attention are memecoins, which have just seen their discussion reach a new record.

The reason behind this heightened interest in these tokens is the impressive price surge that Dogecoin has seen over the past week, leaving the rest of the industry far behind after accumulating gains of over 104%. However, in retrospect, this outperformance may not be a good thing.

Santiment notes that “The social dominance of highly speculative assets has historically been indicative of greed and emotional trading.” Crypto assets tend to move against crowd sentiment, so greed is often what leads to market tops. Therefore, it is likely that focus will shift away from Dogecoin if Bitcoin and other coins continue their upward momentum.