The data indicates a decline in the social dominance of Dogecoin to the lowest level since 2020, suggesting that interest in this meme-based cryptocurrency is waning. Is this the end of the Dogecoin phenomenon?
Recent research conducted by on-chain analysis firm, Santiment, suggests that memecoins are losing popularity among investors and social media users.
🐶 As #altcoins have seen more declines than gains since the mid-July #crypto market local top, #memecoins are showing a smaller ratio of overall trader interest than they have in some time. Particularly, $DOGE has the lowest discussion rate since 2020. https://t.co/QO5Cbuf2G2 pic.twitter.com/aC5NaHyGGb
— Santiment (@santimentfeed) September 27, 2023
A key indicator to look at is “social dominance”. However, to understand its significance, one must first understand the concept of “social volume”. It’s a measure of discussions surrounding a particular cryptocurrency carried out by users of major social platforms. This metric is calculated by analyzing the number of unique posts, mentions, or threads referring to a particular cryptocurrency.
It’s not just about the sheer number of mentions though. If one thread has 100 mentions of Dogecoin, but the rest of the social world is silent on the topic, one cannot say that the cryptocurrency is currently popular.
Looking at the “social dominance” indicator, it tells us how the social volume of a cryptocurrency compares to the volume of the top 100 cryptocurrencies in terms of market capitalization.
Recent months have been tough for memecoins. Their social dominance has decreased, suggesting that investors are shifting their focus elsewhere. The decline is particularly noticeable for Dogecoin, currently standing at only about 0.87%. This means that only 0.87% of all discussions about the top 100 cryptocurrencies are about DOGE.
Shiba Inu, the second-largest meme cryptocurrency, has an even lower social dominance, at around 0.55%.
The situation with Pepe is interesting, who, after a previous decline in interest, experienced a recent revival, mainly due to a 16% increase over the last week.
Historically, excessive interest didn’t always translate to positive market outcomes. Too much hype could even be counterproductive. For Dogecoin, the lack of attention could now be an opportunity for discreet growth before it once again becomes the center of attention.
Although Dogecoin is not currently showing signs of revival, it’s worth monitoring its movements. It might be the calm before the storm when this cryptocurrency regains popularity.
Photo by Kanchanara on Unsplash
