Data from Santiment shows XRP and Cardano, among other altcoins, may be the ones worth keeping an eye on in the coming days.
Social Dominance Of Altcoins Like XRP & Cardano Has Remained Low Recently
According to data from the analytics firm Santiment, Bitcoin is seeing the greatest attention in the market right now, while some of the alts aren’t being talked about that much. The indicator of interest here is “social dominance,” to understand which the “social volume” needs to be looked at first.
The social volume is a metric that measures the total amount of unique social media posts/threads that are making mentions of a given asset or term. By “unique,” what’s meant here is that the indicator only counts these posts once regardless of how many times they mention the term (obviously, as long as they make at least one mention).
If the metric counted the pure number of mentions instead, then a thread with a large number of mentions could raise the count by itself, even if mentions may be low everywhere else on social media. Thus, to obtain a more accurate representation of the trend in the wider market, the social volume only considers unique posts.
Now, social dominance is an indicator that compares the social volume of a given cryptocurrency with the combined social volume of the top 100 assets (by market cap) in the sector.
Here is a chart that shows the trend in the social dominance of the five largest coins in the market: Bitcoin (BTC), Ethereum (ETH), BNB (BNB), XRP (XRP), and Cardano (ADA):
Looks like the value of the metric has stayed low for the altcoins | Source: Santiment on Twitter
As displayed in the above graph, the social dominance of Bitcoin has been high since the rally started around the start of the year. The asset has been leading the price surge in these last few months, so it’s not particularly surprising that the interest in the cryptocurrency has been elevated during this period.
Discussions around BTC on social media had been dropping slightly last month when FUD had been going around in the market, but with the latest leg in the rally above the $30,000 level, interest has once again spiked in the coin.
While this has happened, however, the other top assets like XRP have only observed a sideways trend or a drawdown in their respective social dominance. This would imply that these cryptocurrencies have failed to garner any significant attention during the last couple of weeks.
The amount of discussion that Bitcoin is seeing, though, isn’t always a good sign, as too much excitement has historically often resulted in the formation of a local top.
On the contrary, as the alts aren’t getting too much attention currently, they may have the potential for observing more price rise. Cardano, BNB, and XRP, in particular, have pretty low values of the indicator right now, which, according to Santiment, makes them worth keeping an eye on.
At the time of writing, XRP is trading around $0.48, up 1% in the last week.
XRP seems to have been struggling recently | Source: XRPUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net
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