Lately, there’s been a noticeable uptick in chatter around Ethereum on social media, which could bode well for the cryptocurrency’s sluggish price.
Recent data from analytics outfit Santiment indicates a sharp rise in what’s known as Ethereum’s Social Dominance. This indicator relies on the “Social Volume” metric, which gauges how much a specific topic or term is being discussed across major social media platforms. It does so by tallying up the number of unique posts, messages, or threads that mention the term, rather than merely counting the mentions themselves. This approach helps avoid skewed results that could occur if a few users post extensively about a topic, making it appear as if broad conversation is happening when it’s not.
By focusing on the breadth of posts rather than sheer volume, the metric only spikes when talk is widespread across several users, suggesting robust discussion. The Social Dominance of a particular token, like Ethereum, reveals what fraction of total cryptocurrency chatter it occupies. It uses Social Volume in comparison with the top 100 coins by market cap to calculate this.
Santiment recently shared a chart illustrating the trajectory of Ethereum’s Social Dominance over the past months:
You can see from the chart that there’s been a sudden surge in Ethereum’s Social Dominance. This leap means ETH now takes up a significant chunk of social media discussions within the crypto space.
As of this surge, the indicator sits at 9.2%, indicating that nearly a tenth of cryptocurrency-related discussions include Ethereum in some capacity. Given Ethereum’s recent price struggles, this increased attention might foreshadow positive developments in the near future.
It’s worth noting that this spike in Social Dominance isn’t Ethereum’s only good news. Additional data shows that the amount of Ethereum available on exchanges has dropped sharply. This suggests that investors are pulling their coins out of centralized exchanges. Within the last few weeks, 0.83% of the total supply of ETH has been withdrawn, leaving just 6.38% housed on these platforms.
Currently, Ethereum is trading at roughly $2,700, marking a 1% increase over the past week. If this kind of social media interest keeps up, together with diminishing exchange supply, it may hint at a potential shift in the market dynamics for Ethereum.
The images supporting these insights are sourced from Dall-E and Santiment.net, with the charts provided courtesy of TradingView.com.
