A recent DataLight report found that BTC has considerably increased its popularity after the price rally it experienced a few weeks ago. According to the data analysis firm, BTC continues to be the “Crypto King” not only in terms of marketcap but also by the number of interactions it generates in social networks.
Economics is a social science, and whoever understands the dynamics of society may have an approximate knowledge of the causes behind price movements and the possible consequences of a given stimulus. While this is not a strange thing, sometimes this type of information tends to be omitted by some analysts who prefer to perform technical analysis exclusively focusing on prices.
The Twitter Hype Index is a statistic developed by the DataLight team to measure how excited the community feels about a given Token. The more tweets, the greater the interest. At the time of writing this article, BTC surpasses all crypto currencies, with an advantage of almost 3x over its nearest competitor (Ethereum).
The report shows that the first three tokens have a hype proportional to the position they occupy by marketcap, however from the fourth place the situation changes. Tron (TRX) competes with XRP and XLM despite being outside the Top 10 of the global marketcap, but no one can doubt the marketing skills that Justin Sun (project leader) has demonstrated over time.
DataLight explains that they design this index for those traders who rely more on fundamental analysis. Since Twitter is one of the most popular social networks among crypto currency enthusiasts, a correct twitter hype measurement allows us to know how attractive a token is and how much expectation it generates not only in the community but also in other investors.
This index helps you to conduct price analysis. For example, soaring prices which are not accompanied by positive dynamics in Hype Index can make an investor cautious, but a fall in the Hype Index accompanied by a stable price might be a reason to fix profits/losses on an asset.
BTC has never lost its position, but certainly its popularity had decreased, however, the results obtained by DataLight show that it is not only growing in marketcap but also in the level of confidence and interest it generates in the community. This is not only because of the prices, but likewise because of the number of new projects that are being developed around Bitcoin.