By Nicolas Abington | Crescent City Capital Market Analyst Intern
Social trends are becoming increasingly useful in the crypto space as they are a good indicator as to what other traders are focused on and any upcoming coins that might otherwise be missed. The problem is we are usually coming on to these trends too late and we end up feeling like we missed the boat. With social media becoming more prevalent in modern-day society, tracking these trends has never been easier. Those over at Santiment have created a system to track social trends on popular crypto community sites like Telegraph, Reddit, and Discord. The service then aggregates the most commonly talked about subjects and filters them based on their positivity (FOMO) and Negativity (FUD). The program also filters out any redundant common topics for their emerging list like Bitcoin or Ethereum so you can see what are the newest coins you should be looking for. he questions for most traders is how to use these trends to better understand the market in the short, medium, and long term.
There are two main uses for the product, to filter out the noise that is so common in crypto news and to attempt to find the tops and “hype peaks” of emerging/popular assets. The tool sites how there is a trend between an asset receiving a lot of positive praise from the market and the asset’s price tumbling as a result. While this may sound unintuitive, examples from today include Zebi (ZCO) reaching the top in emerging trends on Santiment while also receiving a 24.61% decrease in ZCO/USD.
While the tool is not a perfect predictor of price fluctuation in the market, it has proven to be a useful indicator while training and should be handy as public sentiment continues to dictate cryptocurrency’s future.