Onchain data shows that Dogecoin (DOGE) and Shiba Inu (SHIB) set social dominance at its highest point in five months, prompting us to discuss how the price may trend. Meme coins like DOGE and SHIB have also gained a lot of buzz over time in the past week as blue chip cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have been strong.
Social media buzz around these meme coins is currently at a high point not seen since May, blockchain analytics firm Santiment tells CoinDesk. The interest in Dogecoinand SHIB followed price rallies to rise outside the last three months, as measured by the firm’s Social Dominance metric, which correlates with the share of discusses around particular assets.
Dogecoin Dominates Social Attention
Yet, Santiment warned that as long as this spike in attention continues on the heels FOMO (fear of missing out) prices for tokens can suffer as a result. First, prices can be kicked higher temporarily as a result of FOMO, or the tendency for investors to jump in to popular assets simply to avoid missing out on gains.
Hype is often too much and too often results in unsustainable growth and price corrections. Crowd sentiment historically moved against crypto prices and suggests they may be careful today too.
Further, Santiment also sees other opportunities in the market, noting that low social dominance Layer 2 tokens such as Arbitrum and Optimism could be undervalued tokens. Speculative meme coins may still pump in the short term, but the firm noted being in less popular assets usually leads to better gains.
Dogecoin’s price has already hit above $0.14, up 6% in the last 24 hours, as of now. With these popular meme coins, investors are being asked to stay cautious as social hype is on the rise but could be a prelude for a price top to come.
