As buzz around cryptocurrency continues to grow, we conducted research into the role social media plays in determining the perceived value of stocks and currency. By analyzing tracking patterns through Twitter mentions and looking at social mentions vs. growth rates on Twitter and Reddit, our research reveals social media conversation and search volume around cryptocurrencies has a strong correlation with the price and value of that currency. Based on data from six cryptocurrencies: Bitcoin, Ethereum, Tron, Binance, Chainlink, and Litecoin, the insights illustrated:
When comparing social mentions and value, all coins illustrated a close relationship. For example, when Bitcoin Twitter mentions and price movement were compared the results showed a strong relationship:
This month, small investors caused GameStop stock value to skyrocket by 680 percent, using Reddit’s ‘WallStreetBets’ group and the help of a Tweet from Elon Musk. As the number of social media mentions increased, we were able to see a correlating surge in value. With investors using platforms such as Robinhood to buy high stocks at high volumes to drive up the price, groups on Reddit were able to surge valuations.
GameStop on Reddit had a 1107% increase in social mentions month on month GameStop on Twitter received a 264% increase in social mentions month on month