Social volume is considered an integral part of the cryptocurrency market. This happens to be an extremely important indicator for traders/investors to determine future profitability.
Telegram, Slack, Reddit, and Twitter are used by the crypto teams to communicate updates, announcements, and roadmaps with the rest of the community. The latest status check has a lot of interesting revelations.
Ace in the declining hole
The crypto market has witnessed a massive correction and sell-offs in the month of May. Given the sentiment, even overall discussion levels on social media platforms have continued to decline.
But here’s a small twist that could help revive the network. Overall social volume across Telegram, Reddit, and Twitter now show differing behaviors.
Source: Santiment
The on-chain analysis platform, Santiment in a 28 May tweet stated,
“As crypto market caps continue to wane, we’re watching the differences in overall discussion levels on Telegram, Reddit, and Twitter. Twitter has the highest rise in crypto interest since 2021, while Telegram‘s more anonymous platform has fallen.”
To better understand this effect, let’s consider the largest coin, Bitcoin. The king coin maintained a direct relationship with social sentiments. Social volume can have a ‘snowball effect’ on price movements, both to the upside and downside.
Looking at social volume (the sum count of content that mentions Bitcoin-related terms at least once, particularly on Reddit, Twitter, and Telegram), one could see a positive correlation.
Source: Santiment
Likewise, consider the active Telegram users in correlation with Bitcoin- even though the outcome remains a bearish one, but at least the relationship remains strong.
Source: Santiment
At press time, Bitcoin suffered yet another correction of 2% as it traded around the $28k mark. The correlation stood strong.
Enough said, now happy glimpses
Twitter saw the highest rise in crypto interest since 2021. The other platforms can’t be seen in competition with the microblogging site.
Furthermore, one should also take note here that for BTC, the number of coins held on exchanges has declined, and reached an 18-month low of 2,208.613 as per data provided by blockchain analytics firm Glassnode.
? #Bitcoin $BTC Number of Exchange Deposits (7d MA) just reached a 18-month low of 2,208.613
Previous 18-month low of 2,209.637 was observed on 24 May 2022
View metric:https://t.co/v3uKq4dCjX pic.twitter.com/HHUMLzRNeX
— glassnode alerts (@glassnodealerts) May 28, 2022
Source: https://ambcrypto.com/bitcoin-telegram-slack-reddit-and-twitter-decoding-the-mystery-of-social-volume/