- According to data from on-chain analytics firm Santiment, Chainlink
(LINK) is currently the third most trending asset in the market.
- Chainlink’s social dominance has seen a significant increase following the rapid price surge of the cryptocurrency in the past few days.
- At the peak of this recent sharp rise, the asset’s value reached $8.46, but since then, the price has experienced a slight decline and is currently trading at $8.14.
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Chainlink (LINK), one of the popular cryptocurrencies, has successfully surpassed the $8 mark with a strong rally, becoming the third most trending asset.
Rapid Increase in Chainlink’s Social Volume
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According to data from on-chain analytics firm Santiment, LINK is currently the third most trending asset in the market. The interesting metric here is “social dominance,” but to understand it, we need to look at another metric: social volume.
Social volume measures the total amount of social media text documents (such as text-based posts, topics, messages, etc.) related to a specific asset (in this case, Chainlink). This metric provides information about how much discussion the cryptocurrency receives on major social media platforms such as Twitter, Reddit, Telegram, and 4chan.
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Now, the aforementioned social dominance is a metric that compares the social volume of a cryptocurrency with the combined social volume of the top 100 assets in the market. Naturally, for LINK, this indicator shows us how much of the discussions about the top-ranking cryptocurrencies are focused solely on Chainlink.
Below is a chart showing the trend in LINK’s social dominance over the past month:
As seen in the chart above, Chainlink’s social dominance has seen a significant increase following the rapid price surge of the cryptocurrency in the past few days.
LINK Price Surpasses $8
At the peak of this recent sharp rise, the asset’s value surged by 20% to reach $8.46, but since then, the price has experienced a slight decline, and it is currently trading at $8.14. Historically, such rallies have drawn attention to LINK, so it’s not surprising that the cryptocurrency’s share in industry discussions has increased. However, the size of this surge might raise some concerns. Despite being ranked only 20th in terms of market capitalization, Chainlink is currently the third most talked-about asset in the market.
When an asset is extensively discussed, the likelihood of the price showing a movement contrary to what the large crowd expects increases. Considering that the latest discussions came right after the rally, these conversations might actually be a sign of hype in the market.
Such a level of hype has often been a bearish signal for Chainlink, as peaks become more likely in such market conditions. If a similar pattern is followed now, it could mean that the current surge in social dominance is a sign that the cryptocurrency has already reached a local peak.