Does Twitter mentions proxy market cap?
Lately I’ve been setting up a Twitter related database in order to see if this data adds value in valuing Crypto currencies. What can be seen from the data is that #Bitcoin and #Ethereum have far greater volume in Twitter mentions (respectively approximately 1000 and 500 hourly mentions) relative to smaller CryptoCurrencies, which is no surprise. However from that I thought it would be interesting to plot the Twitter mentions of smaller Crypto’s versus their respective market capitalizations. This results in the following graph (data can be found in Data section, mentions of last week have been used):
- Yellow bars – Hourly mentions over last week
- Dark bullets – Market capitalizations (mio $)
- Grey bullets – Count of significant positive mentions (score >0.5), this does not imply that the remainder is negative
- Legend x-axis – Polarity (from -1 (negative) to +1 (positive))
Interesting observation is that Steem gets relative a lot of mentions relative to it’s market cap, while Ripple shows the opposite. This data will be monitored over time in the Report (so subscribe if you are interested).