Dogecoin & Other Memecoins Seeing Less Interest Than Bitcoin: Data

Source Newsbtc

Data shows social media users are currently not paying much attention to memecoins like Dogecoin (DOGE) as compared to Bitcoin (BTC) and other top caps.

Bitcoin & Other Layer 1 Top Caps Getting All The Investor Focus Right Now

According to data from the analytics firm Santiment, social media users are showing increased focus on the top layer 1 assets as compared to memecoin and other sectors. The indicator of relevance here is the “Social Dominance,” which is based on another metric called the Social Volume.

The Social Volume basically tells us about the amount of discussion that any given topic or term is receiving on the major social media platforms. The indicator makes this measurement by counting up all posts/threads/messages that make at least one mention of the keyword.

The reason that the indicator doesn’t simply count up the mentions themselves is so that just a few posts with a large amount of mentions can’t skew the value by themselves. When the Social Volume spikes, it means the users across social media are talking about the term and not just niche circles.

Now, the Social Dominance, the actual indicator of interest here, keeps track of the percentage of the combined Social Volume of the top 100 cryptocurrencies by market cap that a given coin or group of coins is occupying right now.

Below is the chart shared by the analytics firm that shows the trend in the Social Dominance for four segments of the sector over the past month:

Bitcoin Vs Dogecoin Social Dominance

As displayed in the graph, the Social Dominance of the top 6 layer 1 assets has recently been the highest in the sector. “Layer 1” networks refer to those blockchains that handle their own security and aren’t built on top of another network. The networks that are built on these primary chains are titled Layer 2.

Some of the top layer 1 coins are Bitcoin, Ethereum (ETH), and Solana (SOL). While these layer 1 coins are enjoying a high dominance of discussions in the sector now, this wasn’t the case just earlier in the month.

Back then, the other segments of the sector had been getting the focus instead. From the chart, it’s visible that the top layer 2 coins, like Polygon (MATIC) and the top meme coins, like Dogecoin, have been receiving notable talk on social media.

While this does mean that investors aren’t interested in assets like Dogecoin right now, the fact that the focus is on Bitcoin and other top caps could actually be a bullish development for the sector as a whole.

“Crypto’s consistent rises occur most often when there is a focus on top caps (a sign of caution) rather than more speculative assets (a sign of greed),” explains Santiment.

Dogecoin Price

At the time of writing, Dogecoin is trading around $0.129, down more than 4% over the past week.

Dogecoin Price Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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