Data shows that there has been a lot of discussion on social media about Chainlink lately, which could be positive for the price.
Chainlink’s social dominance has recently seen a spike
In a new after On X, analytics firm Santiment has been discussing what social dominance looks like for Chainlink lately. The “Social Dominance“This refers to an indicator based on the Social Volume metric.
The Social volume tells us about the total amount of discussion a certain topic or term gets on the major social media platforms. The indicator determines this by reviewing posts/threads/messages on these platforms and noting where the term is mentioned.
This metric does not count the mentions themselves, but the unique number of posts that contain them. The reason behind this methodology is that the number of mentions alone can sometimes be misleading for the actual amount of discussion on social media.
This happens, for example, when only niche circles talk about the term. They can have a lot of discussion, but these high mentions do not reflect the rest of the social media. By counting only the unique number of posts, the social volume increases when the talk is more widespread.
Social Dominance, the actual metric in question here, tracks the percentage of social volume related to the top 100 cryptocurrencies that comes from a given coin.
Below is the chart shared by the analytics firm that shows the trend in Chainlink’s social dominance over the past few months:
As you can see in the chart, Chainlink’s social dominance has increased over the past few weeks, suggesting that the asset’s share of social media discussions is growing.
Following the recent continuation of this upward trend, LINK’s social media attention density has grown to around 1% of the total social volume of the top 100 digital assets by market cap. This is the highest level for 2024.
In the same chart, Santiment has also included the data for another indicator: the Total number of holdersAs the name suggests, this metric measures the total number of LINK addresses with a non-zero balance on the network.
Interestingly, while this increase in social dominance has come, the number of holders has decreased. More specifically, approximately 1,867 addresses have emptied themselves in the past four weeks.
According to the analyst firm, this decline is caused by the capitulation of small farmers. Santiment notes that the Social Dominance trend combined with this FUD of retail investors “is generally a bullish signal if the markets stabilize this coming week.”
LINK Price
At the time of writing, Chainlink is hovering around $10.60, up over 3% in the past 24 hours.