Chainlink Becomes The Talk Of Social Media: Will This Fuel A Rebound?

Source Bitcoinist

Data shows Chainlink has been seeing many social media discussions recently, which may be bullish for its price.

Chainlink Social Dominance Has Seen A Spike Recently

In a new post on X, the analytics firm Santiment has talked about how the Social Dominance has been looking like for Chainlink recently. The “Social Dominance” here refers to an indicator based on the Social Volume metric.

The Social Volume tells us about the total amount of discussion that a given topic or term receives on the major social media platforms. The indicator determines this by reviewing posts/threads/messages on these platforms and noting which mentions the term.

This metric doesn’t count up these mentions itself, but rather the unique number of posts that contain them. The reason behind this methodology is that the pure number of mentions can sometimes be deceiving of the actual amount of discussion across social media.

This happens, for example, when only niche circles are talking about the term. They may partake in much discussion, but these high mentions don’t reflect the rest of social media. By counting only the unique number of posts, the social volume spikes when the talk is spread out more.

Social Dominance, the actual metric of interest here, keeps track of the percentage of the Social Volume related to the top 100 cryptocurrencies coming from a given coin.

Below is the chart shared by the analytics firm that shows the trend in the Social Dominance for Chainlink over the last few months:

Chainlink Social Dominance

As is visible in the graph, the Chainlink Social Dominance has been rising over the last few weeks, suggesting that the asset’s share of discussions on social media has been increasing.

Following the latest continuation of this uptrend, LINK’s mindshare on social media has grown to around 1% of the total Social Volume of the top 100 digital assets by market cap, which is the highest for 2024.

In the same chart, Santiment has also attached the data for another indicator: the Total Amount of Holders. As its name suggests, this metric measures the total number of LINK addresses carrying a non-zero balance on the network.

Interestingly, while this social dominance increase has come, the total number of holders has decreased. More specifically, around 1,867 addresses have emptied themselves over the last four weeks.

According to the analytics firm, this decrease is caused by capitulation from the small holders. Santiment notes that the Social Dominance trend combined with this FUD from the retail investors is “generally a bullish signal if markets stabilize this upcoming week.”

LINK Price

At the time of writing, Chainlink is floating around $10.6, up more than 3% over the last 24 hours.

Chainlink Price Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EURUSD Long-term Forecast: Can ECB Hawks Overcome the Dollar Bullishness? As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
Author  Mitrade
Mar 13, 2023
As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 21, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Artificial Intelligence is being used to manipulate elections, OpenAI raises alarmOpenAI’s report stated that its models are being used to influence elections. It also stated that it had taken down over 20 operations that relied on its AI model to carry out such malicious activities.
Author  Cryptopolitan
Oct 11, Fri
OpenAI’s report stated that its models are being used to influence elections. It also stated that it had taken down over 20 operations that relied on its AI model to carry out such malicious activities.
goTop
quote