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, 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:
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.
Featured image from Dall-E, Santimnet.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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