A "gamble mindset" has returned to the meme coin market as social sentiment around Dogecoin (DOGE) soars and the number of online meme coin mentions hits a year high.

That's according to onchain analytics firm Santiment, which said Bitcoin is again attracting investors with "FOMO fear" while traders are increasingly investing in meme coins solely on speculation and short-term gains.

"Online discussions about these high-risk tokens have proliferated as traders embrace a gamble mindset, rather than a calculated investment approach," Santiment's marketing director Brian Quinlivan said in a May 1 blog post.

Crypto Traders And Investors Enter 'Greed-Driven' Phase As DOGE Sentiment Soars

In the post, Quinlivan said that although Bitcoin led the crypto market in terms of gains during the final 8 days of April, funds had started to flow into smaller cryptos that are "more speculative." As such, he claimed investors are entering a "greed-driven" phase.

After Bitcoin's rally at the end of the month and subsequent "sideways" trading, investors began taking "bigger risks in hopes of scoring even higher returns through more speculative and riskier purchases."

Leading meme coin, DOGE, in particular, has seen a considerable spike in positive crowd sentiment, said Quinlivan.

Despite the SEC delaying decisions on various meme coin ETFs, investors seem to be in a state of cautious anticipation.

"The SEC's decision to postpone rulings on various meme coin ETFs, despite the initial optimism, has introduced an element of uncertainty," he explained. "This, in turn, might lead to investors taking a more gamble-driven approach to their crypto ventures."

Until late April, DOGE had been experiencing a major decline in terms of crowd interest, but its social dominance has since spiked to its highest level in nearly three months, as the conversations and filings surrounding Nasdaq's ETF listings have risen, Quinlivan noted.

"Analysts and traders have noticed heavy accumulation by whales, with bullish patterns forming in the charts, which has added to the sense that Dogecoin may be entering a new phase of growth," he added. "While the SEC's delays mean that final decisions are still pending, the buildup has created a more optimistic and energized mood around the coin than we've seen in a long time."

Meme Coin Activity Surges On PumpSwap And Pump.Fun

Along with the rise in online discussions around meme coins, DefiLlama data shows trading activity on PumpSwap, the decentralized exchange launched by Pump.fun, surged to $11 billion in April from only $1.7 billion a month earlier.

Similarly, Pump.fun's trading activity rose to $3.3 billion in April. This is up from the $2.5 billion trading activity it saw in March.