DOGE, SHIB Dominate Crypto Market With 5 Months High in Social Activity
2024-10-19

According to on-chain analytics firm Santiment, top meme coins are drawing the most hype in five months.
Santiment noted that top meme coins, including Dogecoin and Shiba Inu, have seen the most crowd discussion since May, which represents a five-month high.
👀 With the crowd anticipating Bitcoin's $70K breach soon, traders are doubling down on high leverage speculative meme coins, where their discussion rates are at their highest level in 5 months. Meanwhile, L2's like Arbitrum and Optimism are being ignored. Speculative coins can… pic.twitter.com/46wIXaoHZ7— Santiment (@santimentfeed) October 18, 2024
This spike in dominance comes as Bitcoin climbed ahead, briefly reaching $69,000 during Friday's trading session. Speculators are once again targeting $70,000 amid increasing demand for digital assets.
With the crowd expecting Bitcoin to break $70,000 shortly, traders are doubling down on high-leverage speculative meme coins, causing their discussion rates to reach the highest level in five months.
This week has seen a significant surge in meme coin talks, according to Santiment. This increase in social dominance is also mirrored in their prices, with Dogecoin up roughly 30% weekly and Shiba Inu up 8% in the same span. Dogecoin has been on a tear for the past six days since Oct. 14.
This surge comes as Bitcoin profits get redistributed to altcoins, with meme coins being a major beneficiary.
Different narratives across market
Elsewhere in the crypto market, a different narrative is observed. According to Santiment, the focus on meme coins has led to a noticeable decline in attention toward Layer 2 solutions like Arbitrum (ARB) and Optimism (OP), which are currently being overlooked. While speculative coins can certainly still pump a bit longer, historical data shows that it might pay to go where the crowd isn't looking.
According to Santiment, top Layer 2 blockchains being abandoned could be a sneaky bullish signal. On the other hand, while meme coins are gaining attention, Bitcoin and Solana are pushing the boundaries of Layer 1 social dominance.
While Bitcoin considers its next move after reaching $69,000, altcoins can continue to grow as long as crowd FOMO doesn't get in the way. This is significant as crowd FOMO may drive the market to reach a local top. Typically, markets decline when the focus shifts away from Layer 1 blockchains and toward more speculative assets due to greed.