Meme-Based Cryptocurrencies Experiencing Social Media Surge-Could This Be a Case of Speculative Investment?
Revamped Insights: The Rising Social Dominance of Meme-Based Tokens
Here's the lowdown on the present crypto scene, with social media buzz shifting from Bitcoin and major assets to meme-based tokens like Dogecoin.
The Memecoin Phenomenon and its Rise in Social Influence
Santon Santiment, a renowned on-chain analytics firm, has shed light on alterations in the Social Dominance for various crypto sectors. This term refers to an indicator that stemms from another metric known as Social Volume. Social Volume assesses the total discussions on significant social media platforms regarding a specific topic or term, considering posts containing at least one mention.
The actual metric of relevance in the current discussion, Social Dominance, highlights the proportion of the Social Volume that a given asset or group of assets occupies in the top 100 cryptocurrencies by market cap.
'Tis no secret that the Social Dominance of three major crypto sectors—Layer 1 and Layer 2 Top 6—has taken a downturn, suggesting reduced investor chatter. Simultaneously, the Memecoin Top 6 has witnessed an upsurge in social media focus.
Intrigued yet? Let's take a gander at the factors behind this memecoin craze.
The Period of Recovery Rally Stalemate for Established Coins
This shift in market attention coincides with the stagnation of the recovery rally for Bitcoin and other coins. As memecoins gain traction, it could imply that investors are increasingly drawn to the rollercoaster ride of speculative assets in the sector.
Put simply, the significant escalation in Social Dominance for memecoins amid a decline for Layer 1 and Layer 2 assets may signify the presence of greed in the market. Historically, the cryptocurrency market has thrived when it defies the expectations of the majority, so this increase in memecoin attention could potentially spell trouble for the overall digital asset sphere.
A Closer Look: Dogecoin and its Trajectory
At press time, Dogecoin stands at around $0.178, having climbed more than 3% in the past week. Compelling, isn't it? But remember, these events can lead to market volatility, so stay cautious!
Source:1. Coin Telegraph2. CoinGated3. Bitcoinist4. The Motley Fool5. Investopedia
- Despite the declining Social Dominance of Layer 1 and Layer 2 top cryptocurrencies, the Social Dominance of the Memecoin Top 6, which includes Dogecoin, has seen a significant surge, as reported by Santon Santiment's on-chain analytics.
- As the recovery rally for established coins like Bitcoin stagnates, investors appear to be increasingly drawn towards memecoins, such as Dogecoin, due to their speculative nature, suggesting a market trend driven by greed.
- The increased Social Dominance of memecoins, particularly Dogecoin, signifies a potential shift in the cryptocurrency market, possibly leading to increased market volatility and raising concerns about the overall health of the digital asset sphere.
- At the moment, Dogecoin occupies a market position of around $0.178, having witnessed a 3% increase in the past week, as per recent reports from various finance and technology sources.
- Regardless of the current cryptocurrency trend, it's crucial for investors to exercise caution when making decisions, especially in the volatile world of altcoins like Dogecoin.
