Although price movements can usually be something of a mystery, social media sentiment can help us determine how popular a cryptocurrency is to better predict price movements. The Datalight Hype Index is a nifty tool that does just that. By looking at social media activity, one can determine which cryptocurrencies the market is favoring. It should come as no surprise that social media activity tends to correlate strongly with market capitalization.

Most Popular Cryptocurrencies on Social Media

The data collected by DataLight shows mostly what you’d expect, with some exceptions.

• Bitcoin (BTC) leads the entire space in Twitter hype, expectedly, with Ethereum (ETH) and Ripple (XRP) trailing behind.
• The fourth coin by Twitter hype is TRON (TRX) with over 970,000 mentions on Twitter this month.
• Steller Lumens (XLM) is close behind with around 927,000 mentions.
• Litecoin (LTC) is sixth with 567,000 mentions.
• After Litecoin, the activity numbers taper off with Binance Coin (BNB), Bitcoin Cash (BCH), Monero (XMR), IOTA, and Cardano (ADA), respectively.

One of the standouts in DataLight’s Twitter hype rankings is TRON. Despite being the 11th largest cryptocurrency by market capitalization, it ranks fourth in Twitter activity. This is likely due to CEO Justin Sun’s active (and controversial) Twitter presence in pushing the project. Ripple, being the third-largest cryptocurrency by market capitalization, is also a project to be reckoned with in its online activity. The so-called ‘XRP Army’ has been incredibly effective in popularizing the project. However, there has also been much conjecture over the community being made up of bots or astroturfers. The data also indicates that older projects like Litecoin and Monero still have a dedicated following on Twitter with ample mentions.

What It All Means

By tracking social media activity, traders can more accurately gauge future price movements. Twitter represents one of the largest pools of investors on social media. Therefore, by using the DataLight Twitter Hype Index tool, traders can know the sentiment and popularity surrounding a given crypto-asset. Generally speaking, hype tends to precede significant price movements. Therefore, if you manage to catch a significant uptick in social media activity for a cryptocurrency, there’s a likely chance that the price could spike as a result. Do you believe social media activity is a useful metric for fundamental analysis? Let us know your thoughts in the comments below.