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In a remarkable shift in investor sentiment, Dogecoin (DOGE) experienced a meteoric rise in social dominance, reaching its peak on November 13, 2023, following a robust surge in the memecoin sector.
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Despite this uptick, the memecoin market as a whole saw a decline of 16% since mid-November, contrasting sharply with a 22% growth in the broader altcoin market, underscoring a potential shift in market dynamics.
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According to a recent analysis by CoinTag, “Dogecoin has maintained its social presence but struggles to convert that into sustained price performance amid a broader altcoin recovery.”
This article dives into the recent trends in the memecoin market, particularly focusing on Dogecoin’s rise and subsequent decline in popularity amidst market fluctuations.
When Did Dogecoin Begin to Drop in Popularity?
Source: Santiment
Dogecoin’s social dominance peaked at its highest level in nearly 18 months on November 13, reflecting heightened community engagement. However, post-peak, it has shown a downward trend, mirroring the broader decline seen across the memecoin sector. Analysis indicates that while DOGE was once able to rally alongside Bitcoin (BTC), it has struggled to maintain momentum, especially as BTC reached new all-time highs.
Memes Have Gone Backwards, While Altcoins Try to Hold Their Ground
Source: TOTAL2 on TradingView
The TOTAL2 market cap, which reflects the total market capitalization excluding Bitcoin, retraced to levels not seen since the last week of November following a recent market-wide downturn. Despite the noticeable drop, the overall altcoin market capitalization has since increased by 22%, indicating a potential recovery while the memecoin sector reevaluates its position.
Source: CoinMarketCap
In stark contrast, the total market capitalization of the memecoins experienced a significant decrease of 16% from November 14, falling from $116 billion to $100 billion currently. This dual scenario of rising altcoin values against declining memecoin valuations highlights the changing priorities among crypto investors.
Source: CoinMarketCap
Among the four major memecoins, Dogecoin remains a strong performer alongside Pepe (PEPE), despite recent market fluctuations. This trajectory reinforces the perception that established altcoins carry more weight in terms of market share and potential growth, continuing to attract investor confidence.
Conclusion
In summary, while Dogecoin’s recent rise in social engagement is notable, its struggle to translate this into sustained market performance reflects broader trends within the cryptocurrency landscape. The memecoin market is experiencing significant volatility, contrasting with the relative stability and growth of a majority of altcoins. Moving forward, investors may increasingly favor altcoins that continue to demonstrate resilience, potentially leading to a rebalancing of portfolio strategies in the crypto arena.
