Cryptocurrencies VS Social Media influence VS Price
Hi steemians!
Today I would like to share with you a study I have finished today, comparing the social indicators of some of the most well known cryptocurrencies versus its price. The purpose of this little work is to find a correlation between social media influence and coin valuation and volume.
Below you have the most followed accounts worldwide so you can compare it to the actual amount of followers and influence a currency has.
- Twitter Followers. At the time of writing the Twitter account with more followers is Katy Perry with 108M followers, second place for Justin Bieber with 105M and third position for Barack Obama with 98M. There are 330M active accounts on Twitter. Source is twittercount.com and statista.com
- FB Likes on page. Right now the page with more Likes is Facebook with 206M. The second is Cristiano Ronaldo with 122M likes and the third place goes for Coca-Cola with 107M. There are 2057M active user accounts. Source is fanpagelist.com and statista.com
- Reddit Subscribers At the time of writing the most subscribed subreddit are /r/announcements with 21M, /r/funny with 18M and /r/AskReddit with 18M as well. There are 250 million active users. Source is expandedramblings.com and redditmetrics.com
I have selected some of the most important cryptocurrencies and the charts will follow the same pattern otherwise specified: Twitter followers, Facebook likes, Reddit subscribers. The timeframe is set to 1 year from today, unless otherwise specified, and the price reference is set to USD.
BITCOIN
ETHEREUM
RIPPLE
CARDANO (1 month timeframe due to cryptocompare stats. Only Twitter & Reddit)
NEM (only twitter)
LITECOIN (twitter and reddit)
STELLAR
IOTA (Twitter and Reddit)
MONERO
STEEM (Twitter and Reddit. Price is only available with BTC)
CONCLUSIONS
As you can see, there's an obvious correlation between social media presence and price. However, BTC, the most followed crypto has only 600K followers, ETH around 300K and Ripple 500K which is still very little to consider it into mass adoption. However Visa and Mastercard are around the same number of followers.
Facebook has 14 million followers on Twitter and Steem only 65K. That means Steem has only 0,46% of followers that facebook has sitting at a price of around 5USD. If we follow those patterns and let our imagination flow (a little bit) if Steem gets the attention of half of the people who follows facebook, let's assume a 46% of its followers, the price of Steem should be 500USD by then.
This might seem crazy and the Steem marketcap would be massive, but as more and more capital flows into the marketcap...who knows what could happen!
What are your thoughts in this Social Media study?
Last, but not least I recommend you to to take a look at those two post I wrote for some more crypto comparatives:
What if you invested 10$ on each coin of the Top100 coins @ 1st January 2017?
What will happen if you invest 10$ on each coin of the Top100 coins @ 1st January 2018?
This is not any financial advise. I always try to post interesting and original content, not just crypto but also travel, photography and life so feel free to follow me :)
Correlation will always be there as this is a sentiment driven market, at least sometimes. But social media mentions would also be high if the price is dropping or at a long time low. Likes don't fluctuate, they grow in variable rates.
You must be manipulating those graphs.
I am not manipulating any graph, why would I? You can check them yourself at cryptocompare.com which is the source I used. It just make sense, more followers likes and subscribers drive the price up.