Dogecoin Mania No More: Memecoin Interest Plunging On Social Media

Data shows users on the major social media platforms have continuously been losing interest in Dogecoin and other memecoins recently.

Top 6 Memecoins Have Seen Their Social Dominance Trend Down Recently

In a new post on X, the analytics firm Santiment has discussed about how social media attention has recently shifted for the various cryptocurrency market segments.

The indicator of relevance here is the “Social Dominance,” which is based on another metric known as the Social Volume. The “Social Volume” tells us about the amount of discussion that a given topic or term is receiving on social media right now.

The metric calculates its value by counting up the number of posts present on the major social media platforms that are making unique mentions of the topic in question.

The reason that the indicator doesn’t simply count up the mentions themselves is that doing so can sometimes produce a false picture of the market situation, like when there is little activity overall on the platforms, but a few enthusiasts have some posts up with a high amount of mentions. By only tracking the posts themselves, the Social Volume only spikes when users across social media are participating in talks around the term.

Now, the Social Dominance, the actual metric of interest here, measures the percentage of Social Volume related to the top 100 coins by market cap that any given cryptocurrency or group of cryptocurrencies is responsible for.

Below is the chart shared by the analytics firm that shows the trend in the Social Dominance for three groups of digital assets.

In the graph, the three categories listed are: Layer 1 Top 6, Layer 2 Top 6, and Memecoin Top 6. First, the Layer 1 Top 6 includes the six largest ‘layer 1 networks‘ in the sector. Such blockchains are those that handle their own security and aren’t built on top of any other network. The most prominent examples include Bitcoin (BTC) and Ethereum (ETH).

The second group, the Layer 2 Top 6, includes the coins that are built on top of one of the layer 1s, like Polygon (MATIC) and Arbitrum (ARB). Finally, the Memecoin Top 6 is made up of the tokens that are based on popular memes, like Dogecoin (DOGE) and Shiba Inu (SHIB).

From the chart, it’s apparent that the Social Dominance of the Layer 1 Top 6 has witnessed some sharp growth recently and has broken the 44% mark, meaning that almost half the discussions related to the sector involve one of these assets.

While interest in Bitcoin and others has gone up, the memecoins have noted a decline in discussions. Dogecoin and company today make up for just 4% of social media talks, a significant decrease from the 9.2% peak at the end of December.

Investor talks moving from Dogecoin to Bitcoin may not actually be bad for the market as a whole, however, as Santiment has explained:

A shift in trader attention from meme coins to Bitcoin and Layer 1 assets is generally a sign of a more stable and sustainable market environment.

Dogecoin Price

At the time of writing, Dogecoin is trading around $0.258, down more than 5% over the last week.