What does the social network volume, the less mentioned index in crypto reflect?

Social network volume is considered an integral part of the cryptocurrency market. This is an extremely important indicator for traders or 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. The latest status check with the following information has a lot of interesting revelations.

The crypto market saw a major correction and sell-off in May. With this sentiment, even the overall level of discussion on social media platforms continues to decline.

But this is a small turning point that can help revive a life. The overall social volume on Telegram, Reddit, and Twitter now shows different behaviors.

To better understand this effect, let’s take a look at the largest coin, Bitcoin (BTC). King coins maintain a direct relationship with social sentiments. Social network volume can have a ‘snowball effect’ on bullish and bearish price movements.

Considering social network volume (the total amount of content mentioning Bitcoin-related terms at least once, especially on Reddit, Twitter, and Telegram), one can see a positive correlation.

Likewise, consider Telegram user activity in relation to Bitcoin – although the result is still down, at least the relationship is strong.

At the time of writing, BTC is trading around the $29,000 mark, still showing no signs of improvement from last week. The relationship stands.

Looking at the upside we can see Twitter seeing the highest gain in crypto interest since 2021. Other platforms can’t compete with the microblogging site.

Furthermore, one should also note here that for BTC, the number of coins held on exchanges has decreased and reached an 18-month low of 2,208,613 according to the data provided by the company Glassnode blockchain analysis.

The above figures show that even though the market is in a state of decline, people’s interest in crypto is still maintained and Bitcoin is proof of that shown on social network volume.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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