Crypto Twitter is a major seat of power in the realm of digital assets. Memecoins and serious large-cap assets alike can see their value rise or fall depending on whether the whimsical Twitter crowd decides to pay attention.
Huge rallies and dramatic declines often trigger waves of fear, uncertainty and doubt (FUD) or fear of missing out (FOMO) on the platform, capable of massively amplifying the unfolding price dynamics.
This week, Coindesk followed five digital assets that made the biggest strides in terms of Twitter activity the past month. All five saw their tweet volumes increase by hundreds of percentage points compared with the previous month’s average — but how actionable were these dynamics for traders?
Telcoin (TEL): +300% Twitter volume
Between May 2 and 5, as Telcoin (TEL) was bracing for a massive price leap that would take it from below $0.01 to above $0.05 within 10 days, two considerable spikes in tweets tagging TEL occurred. While the coin would normally get several hundred mentions a day, these two peaks each saw more than 3,000.
Overall, over the last 30 days, Telcoin delivered 189% vs. the U.S. dollar and 345% vs. Bitcoin (BTC).
Polygon (MATIC): +240% Twitter volume
Twitter activity around MATIC and its price action entered a virtuous circle in May, with each leg of the price rally triggering a surge in chatter that, in turn, preceded a further round of the token’s appreciation.
There was much more to Polygon’s remarkable month, with a slew of positive real-world developments and trading activity spikes, but tweet volume appeared to be an essential feature.
MATIC’s monthly gains: 125% vs. the U.S. dollar and 248% vs. BTC.
iExec (RLC): +711% Twitter volume
iExec’s RLC token emerged as the biggest winner in terms of added tweet volume in May, yet its price increase was more modest: 60% against the U.S. dollar and 148% against Bitcoin.
In RLC’s case, as the charts illustrate, spikes in tweet volume were largely reactive and merely followed price action.
Solana (SOL): +525% Twitter volume
Solana saw its average tweet volume increase more than fourfold compared with the previous month, yet almost all corresponding SOL price gains were wiped out by the end of May: -31.48% against the U.S. dollar and +6.06% against Bitcoin.
Ethereum Classic (ETC): +321% Twitter volume
While the reasons behind Ethereum Classic (ETC) suddenly surging from $40 to $160 in the first week of May remain a mystery, we can be fairly certain that an explosion in the volume of Twitter conversation was not one of them: All the added tweets came in response to the price rally.
ETC ended the month with +67.36% vs. the U.S. dollar and +158.85% vs. Bitcoin.
An uptick in Twitter activity around a digital asset can mean a variety of things, depending on the configuration of other important markets and social indicators.