Dogecoin’s Social Dominance Hits Lowest Point, Indicating Declining Interest
Recent data from on-chain analytics firm Santiment reveals a decline in trader interest towards meme coins, including Dogecoin. The key indicator used to measure this trend is “social dominance,” which is based on the social volume metric. Social volume measures the amount of discussion surrounding a particular coin on major social media platforms.
Santiment calculates social dominance by analyzing unique posts and messages that mention the coin. This approach provides a more accurate representation of the overall trend across social media. Comparing the social volume of an asset with that of the top 100 coins by market cap determines its social dominance.
Meme Coins’ Changing Social Dominance
A chart depicting the social dominances of Dogecoin, Shiba Inu, Pepe, and Dogelon Mars over the past year shows a decline in Dogecoin’s social dominance. While Pepe also experienced a similar decline, it recently saw a revival due to a 16% surge in value. Historically, high social dominance has not always resulted in positive market rallies as excessive hype can lead to market downturns.
Potential for Dogecoin
With relatively little attention currently surrounding Dogecoin, there is potential for the memecoin to make a move without excessive hype. This could allow it to quietly gain momentum before attracting widespread attention again.
DOGE Price Stagnation
As of now, Dogecoin has shown no signs of attempting a recovery and has been experiencing sideways movement.
Hot Take: Dogecoin’s Declining Social Dominance Reflects Fading Meme Coin Interest
Data indicates that Dogecoin’s social dominance has reached its lowest point since 2020, suggesting waning interest in the meme coin. This decline aligns with a broader trend of decreasing trader interest in meme coins. While high social dominance has not always translated to market success, the current lack of attention surrounding Dogecoin presents an opportunity for potential growth without excessive hype. However, the memecoin’s price has remained stagnant, indicating a need for a catalyst to trigger a recovery. Overall, the data highlights the evolving landscape of meme coins and the importance of monitoring social dominance as an indicator of market sentiment.
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