In the field of digital assets, Crypto Twitter is an important seat of power. Both memecoins and reputable large-cap investments can see their value rise or fall depending on whether the quirky Twitter crowd decides to pay attention.
Huge rallies and dramatic declines often trigger waves of Fear, Uncertainty and Doubt (FUD) or Fear of Missing Out (FOMO) on the platform, which can massively amplify the unfolding price dynamics.
Granted, it would be handy if increasing Twitter volume always led to price increases – but as the facts show, that relationship is much, much more complicated.
The Tweet Volume is one of the components of a proprietary formula that powers the VORTECS ™ Score, a machine learning algorithm that compares historical and current market conditions surrounding digital assets to aid crypto trader decision making. The model takes into account a variety of other indicators – market outlook, price movements, social sentiment, trading activity – to arrive at a result that will judge whether current conditions for a given coin are historically bullish, neutral, or bearish.
This week we follow five digital assets that have made the biggest strides in terms of Twitter activity this month. All five added hundreds of percent of tweets compared to the previous month’s average – but how feasible was that dynamic for merchants?
The VORTECS ™ Score could give investors some pointers.
Telcoin (TEL): + 300% Twitter volume
Between May 2nd and May 5th, when Telcoin (TEL) was preparing for a massive price spike that would go from under $ 0.01 to over $ 0.05 in ten days, there were two sizeable spikes in tweets, the TEL marked. While the coin typically received several hundred mentions a day, these two peaks were more than 3,000 each.
In combination with other factors, this pattern was recognized as historically favorable by the VORTECS ™ model, which gave a very high score of 91 (red circle in the graphic). Less than a day later, a huge price run followed. More tweet volume spikes this month were more likely to be followed by price hikes than previous ones.
Overall, Telcoin delivered 189% versus USD and 345% versus Bitcoin over the past 30 days.
Polygon (MATIC): + 240% Twitter volume
The Twitter activities around MATIC and its price movements entered a positive circle in May. Each segment of the price rally sparked a spike in chatter, which in turn preceded another round of the token appreciation.
Of course, Polygon’s remarkable month had a lot more going for it, with a number of positive developments in the real world and spikes in trading activity, but tweet volume seemed to be an integral part of any VORTECS ™ score peak (red circles on graph).
MATIC monthly gains: 125% versus USD and 248% versus BTC.
iExec (RLC): + 711% Twitter volume
iExec (RLC) emerged as the biggest winner this month in terms of additional tweet volume, but the price hike was more modest: 60% versus USD and 148% versus Bitcoin.
In the case of RLC, as the charts show, the spikes in tweet volume were largely reactive and merely followed price movements. The coin’s VORTECS ™ score was broadly neutral prior to the rally that began around May 9, suggesting that the combination of market conditions before that had not been widely observed.
Solana (SOL): + 525% Twitter volume
Solana (SOL) was able to more than quadruple its average tweet volume compared to the previous month, but almost all corresponding price gains were wiped out by the end of May: -31.48% against USD and + 6.06% against Bitcoin.
Tweet volume lagged far behind price action with one notable exception: an oversized jump from 5,000 to 20,000 tweets on May 17, which contributed to a VORTECS ™ score of over 80 and about 36 hours before the coin hit its all-time high in near USD 58 (red circles in both charts).
Ethereum Classic (ETC): + 321% Twitter volume
While the reasons why Ethereum Classic suddenly jumped from $ 40 to $ 160 in the first week of May remains a mystery, we can be pretty sure that an explosion in Twitter conversation volume wasn’t one of it: all of the tweets added came in response on the price rally.
The VORTECS ™ algorithm did not sense any historically favorable prospects either, as the score remained largely in the neutral range.
ETC ended the month + 67.36% versus USD + 158.85% versus Bitcoin.
An increase in Twitter activity around a digital asset can have different meanings depending on the configuration of other key market and social indicators. The VORTECS ™ Score, available exclusively to Cointelegraph Markets Pro members, can contextualize tweet volume within a constellation of other market-moving metrics.
For those who prefer to use raw data, the absolute number of tweets and the current vs. average tweet volume are available as separate metrics on the Market Intelligence platform.
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