Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have experienced weak performances in the past three months. While this may not be unusual for the broader cryptocurrency market, the situation seems to have worsened for the meme token group, and it’s not just about price movements.
Although SHIB has shown a 4.78% loss in its 90-day performance, it seems to be the best performer among the three. PEPE is in a worse condition with a 55.31% decrease, while DOGE experienced a 7.66% drop. As a result of these underwhelming performances, investors have shifted their attention away from these listed cryptocurrencies.
As highlighted by the analytics firm Santiment using the social dominance metric on September 28, discussions about Dogecoin, Shiba Inu, and Pepe have reached unprecedented lows. This decrease in social dominance not only indicates the scrutiny analysts have shown towards meme tokens but also reflects diminishing positive expectations for these cryptocurrencies in the short term.
As disinterest in meme tokens continues to grow, there has been a noticeable shift in perception towards them recently. The sentiment surrounding Shiba Inu and Dogecoin has turned negative when it comes to weighted sentiment. This suggests that market participants may have a more pessimistic outlook on DOGE and SHIB.
During this period, the weighted sentiment for PEPE has shifted to the positive zone at 0.786. However, this could be attributed to its 3.38% increase in the last 24 hours. Nevertheless, it can be concluded that sentiment has changed in favor of PEPE. In comparison to Shiba Inu, its ability to show some resilience may be related to the development of Layer 2 Shibarium. While Shibarium has achieved some significant milestones, certain inconsistencies regarding the project have dampened the initial excitement.
Abutalibov, the Chief Communications Officer of the blockchain company Venom Foundation, stated that the lack of influence on SHIB’s price movement could be due to a decrease in market confidence. He also mentioned that the creation of tokens like Bone ShibaSwap (BONE) has affected SHIB’s growth. However, Abutalibov noted that the benefits offered by the Shiba Inu ecosystem could still support short-term growth. In his statement, the expert said:
If there is a significant development in the Shibarium ecosystem, Shib could potentially outperform other meme tokens in the short term at best. However, in the long run, it is likely to follow the overall trend of the meme token index.
Abutalibov’s view seems to confirm investors’ actions in the derivatives market. At the time of writing, SHIB’s long/short ratio had risen to 0.90. This metric provides an idea of investors’ sensitivity by looking at the ratio of long positions to short positions.
Although values above 1 indicate a bullish outlook, a reversal in the long/short ratio may indicate that investors are changing their minds and targeting upward movements for SHIB.
One of the reasons for DOGE’s oversight could be network activity. According to Santiment, the 30-day active addresses on the Dogecoin network were 392,000, a figure that has remained almost the same for the cryptocurrency since July. Active addresses can indicate the level of daily speculation around a token. Therefore, the stalemate in the measurement may imply that many addresses do not find Dogecoin valuable enough to interact with.