The DataLight Hype Index shows Bitcoin leads the way in terms of popularity on Twitter with the results of the ranking closely mirroring the position of cryptocurrencies based on market cap.
Bitcoin is King of ‘Crypto Twitter’
According to a recent report by DataLight, Bitcoin occupies the top position in the Twitter Hype Index – a measure of the degree of popularity of a cryptocurrency on the social media platform.
Whether positive or negative news, stories relating to Bitcoin tend to dominate the “Cryptocurrency Twitterverse.”
Case in point, the hashtag #Bitcoin had more than 800 tweets within the hour as at the time of writing this article.
Of the top 15 cryptos listed in the index, the top three mirror the positions of cryptocurrencies by market capitalization. Bitcoin, Ethereum, and XRP occupy the first, second, and third position, respectively.
Don’t Believe The Hype
However, the perceived hype isn’t everything. Especially on Twitter, a platform rife with phony accounts operated for certain agendas. Twitter bots don’t only push fraudulent investment schemes but can also be used to prop up cryptocurrency projects.
For example, the report highlights how proponents of Ripple and XRP – the “XRP Army,” use Twitter to put the company and the token in the spotlight of crypto discourse.
At least 8,000 outright fake XRP-related accounts were identified by analyst Geoff Goldberg. DataLight notes:
He highlights how a set of accounts creates content which is replicated by a network of other accounts, generating more retweets and likes and so registers a ripple effect (no pun intended) of false enthusiasm for XRP. Furthermore, he identifies a trend where apparent bots follow each other, using XRP or Ripple-based hashtags in their bios to make use of algorithms that disseminate the message.
astroturfing = the deceptive tactic of simulating grassroots support for a product, cause, etc., undertaken by people or organizations with an interest in shaping public opinion #xrparmy #xrpthestandard #xrpcommmunity #xrpthebase #xrp cc: @yoyoel @vijaya @JoelKatz @CoryTV pic.twitter.com/H3s9PfuiwM
— geoff golberg (@geoffgolberg) December 4, 2018
Twitter Hype and Herd Mentality
At the same time, Twitter hype can play a significant role in gauging investor sentiment, which is a fundamental analysis tool for investors. This position relies on the assumption that Twitter constitutes a fair representation of the collective mood of investors. An excerpt from the report reads:
Other than inferring general bullish or bearish trends, the Hype Index can help an investor more specifically. If for example, surging prices are not accompanied by positive movements on the Hype Index, investors might be wary of buying in. While a rising Twitter Hype Index that is not accompanied by a rising price could help investors identify undervalued cryptoassets.
As previously reported by Bitcoinist, herd mentality remains a significant influencer of investor sentiment. With retail investors dominating the cryptocurrency market, there are bound to be sharp reactions to market trends usually signaled by social media commentary.
Meanwhile, Google data shows that the public interest in Bitcoin lags behind price moves suggesting that we are still not out of the early speculative stages of tech adoption.
Do you think social media hype plays a significant part in shaping the market sentiment for cryptocurrencies? Let us know your thoughts in the comments below.
Images via DataLight, Shutterstock
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