- According to data from on-chain analytics firm Santiment, BTC’s social volume has decreased since its rise in March.
- Sharp price movements draw attention to any cryptocurrency, so social media users begin to participate in large amounts of discussion around the coin.
- The US Securities and Exchange Commission’s (SEC) consecutive lawsuits against Binance and Coinbase caused widespread panic in the market.
While interest in the cryptocurrency Bitcoin is decreasing on social media, XRP and Ethereum are starting to stand out.
Interest in Bitcoin Decreasing on Social Media
According to data from on-chain analytics firm Santiment, BTC’s social volume has decreased since its rise in March. Here, “social volume” is a metric that represents the total number of text documents that mention the relevant asset on various social media platforms (such as Reddit, Telegram, and Twitter) that users are currently participating in.
This indicator does not take into account the actual amount of discussion that takes place in any post; that is, even if a text document term is mentioned several times, its contribution still remains as one unit. The benefit of this limitation is that it provides a better picture of how much it is being discussed by general users. If there were no limitation, a long, isolated post with a large amount of cryptocurrency reference alone could affect the indicator itself.
A graph showing the social volume trend of Bitcoin, Ethereum, BNB, and XRP:
As seen in the above graph, Bitcoin showed a significant increase in social volume in March, as the value of the asset first experienced a sharp decline, then recovered with a speculative rally.
Sharp price movements draw attention to any cryptocurrency, so social media users begin to participate in large amounts of discussion around the coin.
However, after peaking in April, the asset’s price was generally in a downward trend. Social volume also followed a downward trend with it, but the indicator observed a small increase during the recent volatility event. High volatility caused widespread panic in the market as the US Securities and Exchange Commission (SEC) sued Binance and Coinbase consecutively. As previously mentioned, it is not uncommon for social volume to increase during such rapid fluctuations in price.
Ethereum, XRP, and BNB also experienced an increase in discussions related to them during this event and exceeded the levels they had seen in the last few months. It is clear that volatility has contributed to this, but it is also possible that the slowdown in discussions about Bitcoin has contributed to this. Investors are seen to be gradually losing interest in BTC and focusing on alternative cryptocurrencies such as XRP.
