There has been a significant shift in investor perception; Dogecoin (DOGE) showed a major increase in its social dominance on November 13, 2023, thanks to the strong momentum in the memecoin sector.
Despite this, the memecoin market has seen a 16% decline since mid-November. This contrasts with the broader altcoin market’s 22% growth and suggests a shift in market dynamics.
“While Dogecoin maintains its social presence, it has struggled to translate that into sustained price performance amid the broader altcoin rally,” an analysis by CoinTag noted. Dogecoin’s social dominance reflects an increase in community engagement, reaching an 18-month high on Nov. 13. However, this peak has been followed by a decline that parallels the general decline in the memecoin sector. The analysis suggests that DOGE once rose alongside Bitcoin (BTC), but while BTC has reached historic highs, DOGE has struggled to sustain its momentum.
TOTAL2, which shows the total market cap excluding Bitcoin, returned to previously unseen levels in the last week of November following the recent market crash. Despite the massive drop, the overall altcoin market cap increased by 22%. This suggests that the memecoin sector may be on the verge of a potential recovery as it reassesses its current state.
On the other hand, the total market value of memecoins has dropped by a massive 16% since November 14, falling from $116 billion to $100 billion. This reveals the contradictory picture between the increasing altcoin values and the decreasing memecoin values, and reveals the changing priorities of crypto investors.
Among the big four memecoins, Dogecoin continues to perform strongly alongside Pepe (PEPE) despite recent market volatility, reinforcing the perception that established altcoins have more weight in terms of market share and growth potential, and continue to garner investor confidence.
