Data shows the social dominance of Dogecoin has dropped to the lowest value since 2020, implying that interest in the meme coin has disappeared.
Dogecoin And Other Meme Coins Have Seen Declining Interest Recently
According to data from the on-chain analytics firm Santiment, meme coins have been occupying a smaller part of the trader interest in the cryptocurrency sector recently.
The relevant indicator here is “social dominance,” but to understand it, the social volume, a metric that it’s based on, must be looked at first. The “social volume” is basically a measure of the amount of discussion around a given coin that users on the major social media platforms are participating in.
The metric calculates this value by going through a collection of text-based data (assembled by Santiment) to see the total number of unique posts/threads/messages that are making mentions of the asset in question.
The reason behind counting unique posts and not simply mentioning them is that the latter can provide an inaccurate representation of the trend being followed throughout social media.
For example, if a single thread contains 100 mentions of the coin, but the rest of social media is barely talking about the topic, then the asset isn’t actually that popular right now as the discussion is really just limited to a single post, but in terms of the pure number of mentions, it may not seem so.
Now, coming back to “social dominance“, this metric tells us how the social volume of a given asset compares with 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 displayed in the above graph, the social dominance of all these meme coins has declined in the last few months as their prices have struggled. These coins are now occupying a smaller portion of the overall discussions related to cryptocurrencies, suggesting that investors are paying less attention to them.
Dogecoin’s fall has been especially notable, as the indicator’s value has now plunged to around 0.87%, which is the lowest level that the original memecoin has observed since 2020. What this value signifies is that 0.87% of all talks around the top 100 assets are being contributed by discussions related to DOGE.
Shiba Inu, the second largest meme coin in the sector, is currently occupying even lesser mind share, as the social dominance for the asset is floating around 0.55%.
Interestingly, while interest in Pepe had earlier also declined in a way similar to its predecessors, the coin’s social dominance has seen some revival recently, thanks to the strong 16% surge that it has registered in the past week.
Historically, high social dominance hasn’t always been the best news for rallies, as excessive hype can backfire for the market and result in top formations.
For Dogecoin, though, as there is relatively little attention around it, the memecoin can potentially start a move right now and quietly keep it up, before eyes turn back at it again.
So far, Dogecoin has shown so signs of a recovery attempt, as the memecoin has been endlessly moving sideways recently.
DOGE has been moving sideways recently | Source: DOGEUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net