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:  
  • Bitcoin and litecoin are similar in the volume of social mentions, followed by Ethereum, Tron, Binance and Chainlink, respectively.
  • By value, Litecoin and Bitcoin oscillate above and below each other, followed by Binance, Ethereum, Tron and Chainlink.
 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: 

Social Mentions and Currency Value Growth from H1 to H2:

Social Media Mentions vs. Value Growth

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. 

So, what do social metrics reveal?

  • 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

Social Mentions Volume of GameStop MoM for Reddit and Twitter

For more information and insights on Cryptocurrency, download our full report, here