- The memecoin sector ends up giving the most amount of returns compared to other cryptos.
- Social volume around DOGE, SHIB and WIF grew, however, sentiment continued to decline.
With major financial institutions entering the crypto space through ETFs, the confidence in the sector has grown considerably. Even though many investors have been looking into Bitcoin and Ethereum for growth, the best-performing sub-sector in the space has been memecoins.
Source: Coingecko
Memeing away
One of the major contributors to this growth has been Solana’s memecoin sector. Due to the low barrier for entry caused by the low fees on Solana, many users are able to launch their coins on the network.
Memecoins such as BOME, BODEN, and MEW attracted many addresses and added to the hype around the memecoin sector.
Source: Coingecko
One of the major winners in this space was dogwifhat(WIF), which quickly climbed up the ranks, surpassed other major memecoins, and claimed the number 3 spot in the memecoin race.
Source: CoinMarketCap
At press time, DOGE reigned supreme in the memecoin sector, followed by SHIB. A large majority of their price movements are dictated by the attention these memecoins are gathering on the social front.
AMBCrypto’s analysis of Santiment data revealed that DOGE and WIF’s social volume soared in the last few days. However, the social volume around SHIB has declined.
Source: Santiment
Some challenges ahead
Even though social volumes for all of these memecoins surged, the sentiment around these tokens painted a different picture. The weighted sentiment for DOGE, SHIB, and WIF had declined significantly over the last few days.
This indicated that the number of negative comments around these tokens had surpassed the number of positive ones at the time of writing.
If the negative comments around these memecoins continue to rise, it would be harder for these memecoins to rally further and show more growth.
Source: Santiment
Even though WIF continued to attract new addresses to itself, memecoins such as Dogecoin and Shiba Inu have a competitive edge as they have a ecosystem surrounding their token.
Realistic or not, here’s WIF’s market cap in BTC’s terms
However, in the last month, the activity on these ecosystems has declined. AMBCrypto’s investigation into Santiment’s data showed that the number of active addresses on both these networks had fallen significantly.
Both Dogecoin and Shiba Inu would have to improve the attractiveness of their ecosystems to continue to have the top position in the memecoins space.
Source: Santiment