Santiment Reveals the Metric It Claims Determines the “Peak” and “Bottom” in the Cryptocurrency Market

Santiment Analysis Highlights Correlation between Memecoin Mentions and Cryptocurrency Market Decline

Cryptocurrency analysis firm Santiment reports an interesting observation coinciding with today's market decline.

On Thursday, social media mentions of memecoins such as Dogecoin and Bonk surged significantly. According to Santiment analysts, historical trends suggest that this shift in focus from layer 1 projects to speculative assets often precedes a correction due to heightened greed.

Yesterday's spike in memecoin mentions appears to have aligned with this pattern.

Overall Cryptocurrency Market Declines

The broader cryptocurrency market experienced a decline today, with Bitcoin (BTC) falling by 1.5% in the last 24 hours. The total market capitalization has also decreased by approximately 1.67%.

As of data from CoinMarketCap, the total value of the cryptocurrency market stands at $2.29 trillion, with BTC accounting for $1.3 trillion.

Tier 1 vs. Speculative Assets

Santiment's analysis suggests that an increase in mentions of Tier 1 cryptocurrencies typically signifies a market bottom, while an influx of mentions of speculative assets like memecoins indicates a market peak.

Disclaimer: This information is not intended as investment advice.