- The memecoin sector ultimately yields the most returns compared to other cryptos.
- Social volume around DOGE, SHIB and WIF grew, but sentiment continued to decline.
With major financial institutions entering the crypto space through ETFs, confidence in the sector has grown significantly. While many investors have explored Bitcoin and Ethereum for growth, memecoins are the best-performing subsector in the space.
Source: Coingecko
Meme gone
One of the main contributors to this growth is Solana’s memecoin sector. Due to the low barrier to entry caused by the low fees for Solana, many users can launch their coins on the network.
Memecoins such as BOME, BODEN and MEW attracted many addresses and contributed to the hype around the memecoin sector.
Source: Coingecko
One of the big winners in this space was dogwifhat (WIF), which quickly climbed the ranks, surpassing other major memecoins and claiming third place in the memecoin race.
Source: CoinMarketCap
At the time of writing, DOGE reigned supreme in the memecoin sector, followed by SHIB. A large majority of their price movements are dictated by the attention these memecoins garner on the social front.
AMBCrypto’s analysis of Santiment data revealed that DOGE and WIF social volume has skyrocketed in recent days. However, the social volume around SHIB has decreased.
Source: Santiment
Some challenges ahead
While social volumes for all these memecoins soared, the sentiment surrounding these tokens painted a different picture. Weighted sentiment for DOGE, SHIB and WIF had fallen significantly in recent days.
This indicated that the number of negative comments surrounding these tokens had exceeded the number of positive comments at the time of writing.
If the negative comments surrounding these memecoins continue to rise, it would be more difficult for these memecoins to continue to rise and show more growth.
Source: Santiment
While WIF continued to attract new addresses, memecoins like Dogecoin and Shiba Inu have a competitive advantage because they have an ecosystem around their token.
Realistic or not, here is the market cap of WIF in terms of BTC
However, activity on these ecosystems has decreased over the past month. AMBCrypto’s investigation into Santiment’s data found that the number of active addresses on both networks had dropped significantly.
Both Dogecoin and Shiba Inu would need to improve the attractiveness of their ecosystems to continue to hold the top position among memecoins.
Source: Santiment