Memecoins Gain Attention as Online Discussions Hit Year-to-Date High
Online discussions about memecoins have reached a year-to-date high, indicating a significant increase in attention towards these high-risk tokens. According to on-chain analytics platform Santiment, the sentiment around memecoins has cooled earlier in the year but has now gained considerable attention.
Shift in Focus from Bitcoin to Memecoins
Two weeks ago, discussions around Bitcoin (BTC) and layer-1 protocols peaked during the market volatility brought on by the Trump administration’s sweeping tariffs. However, the focus has since shifted to high market cap memecoins. Santiment marketing director Brian Quinlivan stated that online discussions about these high-risk tokens have proliferated as traders embrace a gamble mindset, rather than a calculated investment approach.
Speculation and Short-Term Gains
Quinlivan added that this is a telltale sign that traders are increasingly investing based solely on speculation and short-term gains. The overall crypto market has risen 10% in the past eight days, but Bitcoin only gained 7%, indicating that traders are flocking to more speculative assets. Any time Bitcoin leads an initial rally and then begins to move sideways, investors generally start taking bigger risks in hopes of scoring even higher returns through more speculative and riskier purchases.
Dogecoin Discussions Spike on ETF News
In particular, Dogecoin (DOGE) has seen a notable spike in positive crowd sentiment after a major decline in crowd interest during April. This surge in interest is attributed to various applications for DOGE exchange-traded funds being filed in the US. Despite the Securities and Exchange Commission delaying its decision on these filings until mid-June, Quinlivan says traders are in a state of cautious anticipation.
Increase in Social Dominance
Until late April, DOGE had been on a major decline in terms of crowd interest. But its social dominance has spiked to its highest level in nearly three months, as the conversations and filings surrounding Nasdaq’s ETF listings have risen. DefiLlama data shows PumpSwap, the decentralized exchange of the memecoin launch platform Pump.Fun, saw a spike to $11 billion in monthly trading volume during April after recording only $1.7 billion in March.
Memecoin Activity Explodes
Memecoin activity exploded after the launch of US President Donald Trump’s memecoin on Jan. 18, with Pump.fun usage recording a high of $3.3 billion in weekly trading volume. However, traders soon cooled on memecoins. CoinGecko founder Bobby Ong said in a March 6 report that memecoin investor interest dropped after a series of bad launches, noting the fallout from the Libra (LIBRA) token launch in February as a significant catalyst.
Conclusion
In conclusion, the recent surge in online discussions about memecoins indicates a shift in focus from Bitcoin to more speculative assets. Traders are increasingly investing based on speculation and short-term gains, driven by the potential for high returns. The increase in social dominance and trading volume of Dogecoin and other memecoins suggests that traders are cautiously optimistic about the potential for these tokens to gain mainstream acceptance. As the crypto market continues to evolve, it will be interesting to see how memecoins perform in the long term.
