Cryptocurrency prices are influenced by emotion and mood over economic factors, according to a recent study.
With this study in mind, social insight platform Crimson Hexagon looked at whether there has been any correlation on the financial performance of a particular cryptocurrency, compared to the emotions of enthusiasts and investors on social media in the last month.
The main findings from the analysis were as follows:
- Stellar Lumens (XLM) was the clear winner for positive conversation on social, with 25.5% of the 192,748 posts on Twitter talking about the cryptocurrency in a positive way. It also received the least negative conversation (only 0.75% of posts).
- New entry to the cryptocurrency top ten, Tether (USDT) is the only entry to have more negative conversation around it than positive. This is likely around the fact that Tether’s creators claim that each token is backed by 1 USD for each token issued, yet haven’t been audited to prove this. Investors are therefore approaching the currency with a degree of skepticism.
- Litecoin (LTC) only narrowly misses out to Stellar Lumens from a positivity perspective, and in terms of post volume ranks fourth in total social conversation with 727,852 mentions in the last month, despite being 6th in market capitalisation. Could this mean it’ll be the next crypto to get back on the bullish trend after a relatively quiet couple of months?
The lists below are pulled from Crimson Hexagon’s AI-powered consumer insight tool Heliosight, and are based on global Twitter data between the 27th May and the 27th of June.
Current top ten cryptocurrencies by market capitalisation are as follows:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- EOS (EOS)
- Litecoin (LTC)
- Stellar Lumens (XLM)
- Cardano (ADA)
- IOTA (MIOTA)
- Tether (USDT)
Social mentions of top ten cryptocurrencies are as follows:
- Bitcoin – 7,037,366
- Ethereum – 4,308,902
- Ripple XRP – 1,376,698
- Litecoin – 727,852
- EOS – 655,402
- Bitcoin Cash – 435,564
- Stellar Lumens – 192,748
- Tether – 146,870
- Cardano – 93,629
- IOTA – 34,616
The top ten most positively talked about cryptocurrencies are as follows:
- Stellar Lumens – 25.5% post volume positive
- Litecoin – 24% post volume positive
- Ethereum – 19.5% post volume positive
- Cardano – 19.5% post volume positive
- IOTA – 19.5% post volume positive
- Ripple XRP – 19.5% post volume positive
- EOS – 18% post volume positive
- Bitcoin – 17% post volume positive
- Bitcoin Cash – 15% post volume positive
- Tether – 11.5% post volume positive
The top ten most negatively talked about cryptocurrencies are as follows:
- Tether – 12.5% post volume negative
- Ripple XRP – 6.5% post volume negative
- Bitcoin Cash – 6% post volume negative
- Bitcoin – 5% post volume negative
- EOS – 5% post volume negative
- Litecoin – 3% post volume negative
- Cardano – 2.5% post volume negative
- IOTA – 2.5% post volume negative
- Ethereum – 1.5% post volume negative
- Stellar Lumens – 0.75% post volume negative