Recent data indicates that Chainlink has been the subject of numerous conversations on social media platforms, potentially driving its price upward.
Recent Surge in Chainlink’s Social Media Presence
A recent update from the analytics company Santiment highlighted a notable increase in Chainlink’s Social Dominance. This metric reflects engagement based on the Social Volume measurement.
Social Volume gauges the extent of discussions related to specific topics or terms across major social media channels. It evaluates the volume by examining posts, threads, and messages, capturing how many different mentions there are regarding a particular term.
Instead of simply tallying mentions, this metric focuses on the unique posts encompassing those mentions. This approach mitigates misleading interpretations of active discussions, especially when a term is only popular in limited circles. By prioritizing unique posts, it accurately captures wider engagement across social media.
Social Dominance is an important metric that tracks the proportion of Social Volume for the top 100 cryptocurrencies that can be attributed to a specific coin.
Below is a chart showcasing the recent trend in Chainlink’s Social Dominance:
The chart indicates that Chainlink’s Social Dominance has risen in recent weeks, reflecting an increased share of conversations about the asset on social media. Currently, LINK occupies about 1% of the total Social Volume among the top 100 cryptocurrencies by market capitalization, marking its highest level for 2024.
In addition to Social Dominance, Santiment also provided data on the Total Amount of Holders, which represents the number of LINK addresses with a non-zero balance.
Notably, despite the rise in social dominance, the number of holders has seen a decline, with approximately 1,867 addresses being depleted in the last month.
Santiment attributes this drop to small holders capitulating. They suggest that the combination of growing Social Dominance and retail investor fear can be seen as a bullish indicator if the market stabilizes in the week ahead.
Current LINK Price
As of now, Chainlink is trading at around $10.6, reflecting an increase of more than 3% in the last 24 hours.
