Social volume is considered an integral part of the cryptocurrency market. It is an extremely important indicator for traders/investors to determine future profitability.
Telegram, Slack, Reddit and Twitter are used by crypto teams to communicate updates, announcements and roadmaps with the rest of the community. There have been many interesting revelations in the investigation of the latest situation.
ace in the falling hole
The month of May has witnessed massive correction and selloff in the crypto market. Going by the sentiment, even the level of overall buzz on social media platforms continues to decline.
But here is a small twist that can help revive the network. Overall social volume on Telegram, Reddit and Twitter now shows different behavior.
Source: Sentiment
On-chain analytics platform, Sentiment in a May 28 tweet where did it go,
“as crypto Market cap is coming down, we are seeing gap in overall buzz levels Wire, redditAnd Twitter, Twitter has the biggest growth crypto interest from 2021, while WireThe more anonymous platform of has fallen.”
To better understand this effect, let’s consider the largest coin, bitcoin. The king’s coin was directly related to social sentiments. Social quantities can have a ‘snowball effect’ on price movements, both up and down.
Looking at social volume (the total number of content that mentions bitcoin-related words at least once, especially on Reddit, Twitter, and Telegram), one can see a positive correlation.
Source: Sentiment
Similarly, active Telegram users consider the correlation with Bitcoin – even if the result is a bearish one, at least the correlation remains strong.
Source: Sentiment
As of press time, bitcoin has seen another correction of 2% as it traded near the $28k mark. The correlation stood strong.
Enough is enough, now a pleasant glimpse
Twitter saw the most growth crypto Interest from 2021 onwards. Other platforms cannot be seen in competition with the microblogging site.
Source: Bitinfocharts.com
Furthermore, it should also be noted here that for BTC, the number of coins held on exchanges has declined, reaching an 18-month low of 2,208.613, according to data provided by blockchain analytics firm Glassnode.
I #bitcoin $BTC Exchange deposits (7D MA) just hit an 18-month low of 2,208.613
The previous 18-month low of 2,209.637 was seen on 24 May 2022
View metrics: https://t.co/v3uKq4dCjX pic.twitter.com/HHUMLzRNeX
— glassnode alerts (@glassnodealerts) 28 May 2022
