Data shows that Dogecoin’s social dominance has fallen to its lowest value since 2020, implying that interest in the meme coin has disappeared.
Dogecoin and other Meme coins have seen a recent decline in interest
According to data from the on-chain analytics company FeelingMeme coins have recently occupied a smaller portion of traders’ interest in the cryptocurrency sector.
The relevant metric here is “social dominance,” but to understand it you first need to look at social volume, a metric on which it is based. THE “social volume” is essentially a measure of the amount of discussion around a given piece that users of major social media platforms participate in.
The metric calculates this value by looking through a collection of text data (assembled by Santiment) to see the total number of unique posts/threads/messages that mention the asset in question.
The reason for counting unique posts and not just mentioning them is that they can provide an inaccurate representation of what is trending on social media.
For example, if a single thread has 100 mentions of the piece, but the rest of social media is barely talking about the topic, then the asset isn’t really popular right now because the discussion is actually limited to a single message. but in terms of pure number of mentions, this may not seem so.
Now, back to “social domination“, this metric tells us how the social volume of a given asset compares to that of the top 100 coins by market cap in the sector.
Here is a chart that shows how the social dominances of Dogecoin, Shiba Inu, Pepe and Dogelon Mars have changed over the past year:
Looks like the value of the metric has been low for the memecoins recently | Source: Santiment on X
As the chart above shows, the social dominance of all these meme coins has declined over the past few months as their prices have struggled. These coins now occupy a smaller portion of overall cryptocurrency-related discussions, suggesting that investors are paying less attention to them.
Dogecoin’s fall has been particularly notable, as the indicator’s value has now plunged to around 0.87%, which is the lowest level the original memecoin has seen since 2020. What this value means, c t is that 0.87% of all discussions around the top 100 assets are contributed by discussions related to DOGE.
Shiba Inu, the second largest coin in the industry, currently occupies an even smaller share as the asset’s social dominance floats around 0.55%.
It is interesting to note that although interest in Pepe had also previously declined in a manner similar to its predecessors, the coin’s social dominance has recently seen somewhat of a revival, thanks to the strong 16% rise it recorded last week.
Historically, strong social dominance has not always been the best news for rallies, as excessive hype can backfire on the market and give rise to top line-ups.
For Dogecoin, however, since there is relatively little attention around it, memecoin can potentially start a move right now and sustain it quietly, before eyes turn to it again.
So far, Dogecoin has shown signs of attempting recovery, as the memecoin has been moving sideways endlessly recently.
DOGE has been moving sideways recently | Source: DOGEUSD on TradingView
Featured image by Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net