On-chain data shows that Chainlink\u2019s social dominance has observed a large spike after its sharp price surge, a possible sign that the top may be here.<\/p>\n
According to data from the on-chain analytics firm Santiment<\/a>, LINK is the third most trending asset in the market right now. The indicator of interest here is the \u201csocial dominance<\/a>,\u201d to understand which another metric needs to be looked at first: the social volume<\/a>.<\/p>\n The social volume measures the total amount of social media text documents (that is, text-based posts, threads, messages, etc.) that are making mentions of a given asset (which, in the current case, is Chainlink).<\/p>\n This metric basically provides us with information about the degree of discussion that a particular coin is receiving across major social media platforms like Twitter, Reddit, Telegram, and 4chan.<\/p>\n Now, the aforementioned social dominance is a metric that compares the social volume of a cryptocurrency, with combined that of the top 100 assets by market cap in the space.<\/p>\n Naturally, in the case of LINK, this indicator tells us how much talk related to the top coins in the market is coming from discussions centered on Chainlink alone.<\/p>\n Here is a chart that shows the trend in the LINK social dominance over the past month:<\/p>\n\n As displayed in the above graph, Chainlink\u2019s social dominance has registered a large spike following the rapid growth<\/a> in the price of the cryptocurrency during the last couple of days.<\/p>\n At the peak of this latest sharp surge, the asset\u2019s value had climbed above the $8.4 mark, but since then the cryptocurrency has gone down a bit. Nonetheless, the price is still floating above $8.1 and the coin\u2019s gains stand at an impressive 19%.<\/p>\n Historically, rallies like these have attracted a lot of eyes to LINK, so it\u2019s not particularly surprising that the cryptocurrency\u2019s share of discussions in the sector has shot up.<\/p>\n The scale of this rise, though, may be a slightly worrying sign. Chainlink is the third most talked about asset in the market right now, despite being only the 20th largest in terms of market cap.<\/p>\n Generally, when an asset is being talked about too much, the price can become more probable to show a move opposite to what this large crowd is expecting. Given that the latest discussions have come just after the rally, it would appear likely that these talks are in fact a sign of hype in the market.<\/p>\n Such amount of hype has often proved to be a bearish signal for Chainlink, as tops become more likely to form in this kind of market environment. If a similar pattern follows now as well, then it may mean that the current social dominance spike is a sign that a local top is already in for the cryptocurrency.<\/p>\n At the time of writing, Chainlink is trading around $8.1, up 15% in the last week.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n On-chain data shows that Chainlink\u2019s social dominance has observed a large spike after its sharp price surge, a possible sign that the top may be here.<\/p>\n According to data from the on-chain analytics firm Santiment<\/a>, LINK is the third most trending asset in the market right now. The indicator of interest here is the \u201csocial dominance<\/a>,\u201d to understand which another metric needs to be looked at first: the social volume<\/a>.<\/p>\n The social volume measures the total amount of social media text documents (that is, text-based posts, threads, messages, etc.) that are making mentions of a given asset (which, in the current case, is Chainlink).<\/p>\n This metric basically provides us with information about the degree of discussion that a particular coin is receiving across major social media platforms like Twitter, Reddit, Telegram, and 4chan.<\/p>\n Now, the aforementioned social dominance is a metric that compares the social volume of a cryptocurrency, with combined that of the top 100 assets by market cap in the space.<\/p>\n Naturally, in the case of LINK, this indicator tells us how much talk related to the top coins in the market is coming from discussions centered on Chainlink alone.<\/p>\n Here is a chart that shows the trend in the LINK social dominance over the past month:<\/p>\nLINK Price<\/h2>\n
Chainlink Social Dominance Rises To 3rd Largest In Cryptocurrency Sector<\/h2>\n