STEEM "Sentiment Index" Implies Explosive Growth!

A few days ago, CNBC took some airtime to bash the cryptocurrency king Bitcoin, this according to one of my YouTube subscribers. Unfortunately, I had missed the segment, but having watched their spiel over the past several years, it's not too difficult to piece together what they may have said.

Based on their traditional methodologies, they likely arrived at the conclusion that bitcoin and cryptocurrencies in general are speculative vehicles. Furthermore, they may have suggested investors stay out of digital platforms due to overheated market conditions. From a lay perspective, it's not hard to see their point.

Bitcoin has doubled its price tag in roughly half-a-year's time. Ethereum has hit quadruple-digit percentiles, while Litecoin is not too far behind. Such concentrated growth is impossible to sustain in the traditional financial markets, hence the bearishness from the mainstream media.

That bias, however, has no bearing or relevance on cryptocurrencies, particularly burgeoning "young guns" like STEEM.

STEEM Sentiment Index

In order to establish a proper analysis of a blockchain-powered investment like STEEM, our methodologies have to evolve. We can't just take our tradition-bound processes and assume that they'll work just fine with cryptocurrencies.

To that end, I've been working on a STEEM "sentiment index." This is a simple mathematical relationship charting the ratio between STEEM's logarithmically-scaled price and volume magnitudes. What I wanted to know was not just how sharply the cryptocurrency jumped, but rather, to create an apples-to-apples comparison between different "phases" of investor psychology.

By charting this sentiment index, I was able to find new insights into already-established data. For example, last summer's speculative jump in STEEM wasn't just a heightened fervor -- it was a condensed fervor. The 234% skyrocket in the sentiment index occurred in just one week.

Contrast that to the present rally. Yes, the STEEM sentiment index ripped to a 449% "return," but it did so over three weeks. That is, investor sentiment is currently less compressed. Broken down weekly, we're looking at a sentiment rate of 150% growth.

Explosive Growth Ahead!

As a long-term investor, it's hard not to get excited about this development. We're seeing tremendous sentiment in STEEM, but in a consistent and controlled manner.

Last year, it was probably impossible to sustain a $4 swing in the Steemit price simply because the volume was not there. For all of 2016, average volume was less than 140,000 coins. In the year so far, the average volume has spiked to nearly 1.13 million, or a 700% differential.

Today, we don't have to worry about whether or not a sentiment growth rate of 150% is sustainable -- it is. This month, the average trading volume runs in excess of 5.4 million -- the highest three-week volume level ever!

With so much enthusiasm towards Steemit and the STEEM currency, it's only a matter of time before we experience radical, shocking profitability.