Over the past week, blue-chip assets like Bitcoin (BTC) and Ethereum (ETH), have been major topics of discussion in the cryptocurrency space — and rightfully so — after a strong positive performance week. Meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have also enjoyed a fair share of the attention in the last seven days.
According to the latest on-chain data, these asset classes have been topping the social charts in the past few days, with the majority of the crypto crowd talking about them, especially after price rallies. Here’s how the rising social sentiment can impact the prices of Dogecoin and Shiba Inu.
Will FOMO Sustain The Meme Coin Rally?
In a recent post on the X platform, Santiment shared that large-cap meme tokens have been drawing a great deal of social media attention in the past few days. According to the blockchain analytics firm, top meme coins like Dogecoin and Shiba Inu are seeing their most crowd discussion since May.
This on-chain observation is based on the Santiment Social Dominance metric, which reflects the share of the discussions in crypto media referring to a particular asset or phrase. Santiment said in the post on X:
Top meme coins (DOGE, SHIB, etc.) [are] seeing [their] most crowd discussion since May (crowd FOMO may soon cause top).
Indeed, this positive shift in investor sentiment might signal renewed faith in the meme coin market. However, the increasing crowd hype is often a warning sign of a potential price top, as rising FOMO (fear of missing out) can dampen the momentum of developing price rallies.
Source: Santiment/X
Fear of missing out, commonly called FOMO, is a phenomenon where investors hastily purchase assets in high demand out of fear of forfeiting potential gains. While FOMO has been known to drive a coin to a higher value in the short term, excessive FOMO often leads to unsustainable upward trends and subsequent corrections.
Furthermore, crypto prices historically tend to move in the opposite direction of the crowd. Hence, if the crypto crowd is paying this much attention to top meme coins, investors might want to approach the market with caution.
Interestingly, Santiment pinpointed top Layer 2 tokens, including Arbitrum and Optimism, as potentially lucrative investment alternatives due to their extremely low social dominance. “Speculative coins can certainly still pump a bit longer, but historical data shows that it pays to go where the crowd isn’t looking,” the on-chain firm added.
Dogecoin Price At A Glance
As of this writing, the price of Dogecoin has broken above the $0.14 level, reflecting an almost 6% increase in the past day.
The price of Dogecoin on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Opeyemi Sule
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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