With much of the market dependent on Bitcoin’ [BTC] sudden price correction over the weekend, retail interest in digital assets appears to get on a hike, consistent with the newest statistics from Reddit.
The r/dogecoin community added 145,859 weekly subscribers, consistent with Subreddit Stats. The gains are hardly surprising given DOGE’s dramatic rally observed over the past week. The meme-based cryptocurrency skyrocketed 400% within that period, bringing its yearly returns to an eye-watering 5,000%.
DOGE’s parabolic rally moderated over the weekend, with social media sentiment data from The TIE indicated more pain within the short term. That’s because price action is usually correlated with social media engagement; a decline within the latter is usually a precursor to bearish price action within the near term.
Moreover, the r/CryptoCurrency community, which is dedicated to all things digital assets, added 86,838 new subscribers earlier within the week. New community members were welcomed by platinum award recipient “mirza1h” earlier on Sunday. during a subreddit post, miraza1h added:
“Past week has been insane within the cryptocurrency ecosystem, so naturally things here weren’t like they normally are. Your curious posts/comments may are ignored a bit. Within the weekend things are a touch more chill, so be happy to ask us anything you would like.
The user also introduced new subreddit followers to Moon, the native token of the r/CryptoCurrency community.
Alike DOGE, the general cryptocurrency market limped into Sunday’s session, having declined by a cumulative $386 Bln, consistent with CoinMarketCap. The digital-asset market cap briefly fell below $1.9 trillion prior to recovering to around $2 trillion.
Massive shakeouts are nothing new for seasoned crypto investors. Even during bull markets, declines of 20% or more are fairly common, especially after major rallies. Speculation about an abrupt decline in Bitcoin’s hash power and therefore the possibility of United States regulatory action against cryptocurrency-friendly banks may have contributed to the decline earlier on Sunday.
Even with the newest reversal, the cryptocurrency market remains double the dimensions it had been earlier in January when it earlier crossed the $1 trillion market cap benchmark.