Bitcoin Social Media Talk Drops To 3-Month Low, All Eyes On Altcoins?

Keshav Verma

1 year ago

3 mins read

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Data shows the social media talk around Bitcoin has dropped to low levels recently, indicating that investors are paying attention to altcoins instead.

Bitcoin Social Dominance Has Declined To Just 17% Recently

According to data from the on-chain analytics firm Santiment, BTC-related discussions on social media have dropped recently. The relevant indicator here is “social dominance,” based on the concept of “social volume.”

The social volume of any asset is a measure of the degree of talk it receives on the major social media platforms. The metric makes this measurement through a text-based data collection that Santiment has procured from different websites.

A feature of the indicator is that it only counts the unique number of posts or messages that mention the coin. This means that if a thread receives many mentions of the cryptocurrency, its contribution to the social volume will remain just one unit.

This restriction helps the social volume provide a more accurate representation of the trend being observed throughout social media. The aforementioned social dominance is a metric that tells us what percentage of the combined social volume related to the top 100 assets by market cap is being contributed by any cryptocurrency.

Here is a chart that shows how the social dominance of Bitcoin has changed during the last few months:

The value of the metric seems to have taken a plunge in recent days | Source: Santiment on X

As shown in the above graph, Bitcoin’s social dominance has registered a downtrend during the last few days, implying that the share of the social media discussions occupied by the number one cryptocurrency has shrunken.

This is perhaps a result of the asset’s price stagnating recently. Generally, investors don’t find such price action interesting, so they may stop paying attention to the coin during phases like this.

With the latest drop in the indicator, its value has dropped to 17%, meaning that 17% of the discussions related to the top 100 coins currently involve the topic of Bitcoin. This level of social dominance is the lowest it has been since June.

Naturally, this drop suggests that the altcoins have recently attracted some attention. Santiment notes that traders are looking elsewhere to FOMO right now, as some of the smaller projects in the market are observing a surge in talks.

Historically, the holders dropping BTC in favor of alts has been a sign of greed in the market. Such greed, however, is generally not favorable for the sector as a whole, as only weak rallies emerge in periods like these.

BTC Price

Bitcoin is trading around the $26,100 level after having decreased by more than 2% during the past 24 hours.

Looks like the value of the asset has taken a hit over the last day or so | Source: BTCUSD on TradingView

Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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