Bitcoin & Other Layer 1 Top Caps Getting All The Investor Focus Right Now

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.

Social media users are currently showing more interest in top layer 1 cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), as compared to memecoins and other sectors, according to data from Santiment.

The indicator used to measure this interest is called “Social Dominance,” which is based on another metric known as Social Volume.

Social Volume indicates the amount of discussion that a particular topic or term is receiving on major social media platforms. The indicator measures this 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.

The chart below, shared by Santiment, shows the trend in Social Dominance for four segments of the sector over the past month:

As can be seen from 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),” Santiment explains.

Dogecoin Price

At the time of writing, Dogecoin is trading around $0.129, down more than 4% over the past week.

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