Data shows that Chainlink has seen a lot of discussion on social media recently, which could be positive for its price.
Chainlink’s social dominance has seen a sharp rise recently.
In new mail In X, analytics firm Santiment talked about what Chainlink’s social dominance has looked like recently. “Social dominance” here refers to a metric based on the Social Volume metric.
Social Discussion Volume tells us the total amount of discussion a particular topic or term has on major social media platforms. The indicator determines this by reviewing posts/topics/messages on these platforms and noting which ones mention the term.
This metric does not count the number of mentions per se, but rather the number of unique posts that contain them. The reason behind this methodology is that the true number of mentions can sometimes be a misleading representation of the actual amount of social media discussions.
This happens, for example, when a term is only talked about in specific circles. They may be involved in a lot of discussions, but these high mentions don’t reflect the rest of the social media. By counting only the unique number of posts, social volume goes up when the talk is more widely distributed.
Social dominance, which is the actual metric of interest here, tracks the percentage of social engagement volume associated with the top 100 cryptocurrencies coming from a given coin.
Here’s a chart shared by the analytics firm that shows Chainlink’s social dominance trend over the past few months:
As you can see from the chart, Chainlink’s social dominance has been rising over the past few weeks, indicating that the asset’s share of social media discussions has been increasing.
Following the continuation of this recent upward trend, LINK’s share in people’s minds on social media has grown to about 1% of the total social volume of the top 100 digital assets by market cap, the highest for 2024.
In the same chart, Santiment also included data for another metric: Total Cardholders. As the name suggests, this metric measures the total number of LINK addresses that hold a non-zero balance on the network.
Interestingly, despite the increase in social dominance, the total number of holders of these titles has decreased. More specifically, about 1,867 titles have been vacated in the past four weeks.
According to the analytics firm, this decline is due to the surrender of small-cap holders. Santiment notes that the trend of social dominance, along with this fear and doubt on the part of individual investors, “is generally a bullish signal if markets stabilize this coming week.”
Price link
At the time of writing, Chainlink is trading at around $10.6, up over 3% in the past 24 hours.