Following the rebound that began yesterday, social activity around digital assets has intensified. Many seem to be watching and waiting impatiently for the end of the bear market! While macroeconomic factors will retain a prominent place, optimism seems to come out of the woodwork. However, should we see there the signs of an obvious recovery? This is what we will see in this article!
Social activity benefits from the mid-week rebound!
According to data from the LunarCrush platform, social engagement has been on the rise for the past few days. This data is particularly visible since the strong recovery that began the day before yesterday and continued yesterday. As the platform says
Activity in the global crypto community is skyrocketing at the slightest sign of a potential rebound. Confirmation of a rebound could send community activity to all-time highs.
The following graph shows the evolution of social activity around digital assets over the past two years:
Yesterday, social activity rose sharply to reach over 910 million mentions. The LunarCrush platform estimates that this value could reach its all-time high in the coming days and even exceed one billion mentions. But for that, the market rebound will have to be sustained for several days.
Despite the bear market, the involvement of users and the community has not weakened. She even got stronger. While this cannot be fully correlated with a return of the bull market, the data speaks for one thing: the crypto community is not resigned.
Bitcoin and Aptos, the tokens that arouse the most interest!
If we take the current data, it is still the Bitcoin (BTC) that generates the most social interest from users. With more than 2.2 million mentions on the networks in the last 7 days. But the mother of cryptocurrencies is followed by Aptos (APT) with over 1.5 million mentions. Ethereum (ETH) completes the podium for the past 7 days.
Looking at the last 3 months, social mentions are largely dominated by Bitcoin, Ethereum and Solana with 28, 23 and 8 million mentions respectively for the three assets. For Bitcoin and Ethereum, this is mainly explained by the size of the projects, the two still representing 60% of the global crypto marketcap today. For Solana, users and the community seem to be wondering about the asset. Because while the bear market has hit the entire market hard, some projects have been more impacted than others. Since the beginning of the year, the SOL course unscrewed by more than 80%. When at the same time, Bitcoin and Ethereum contain the losses up to 60%.
What about the Fear and Greed indicator?
When looking to map general market sentiment, this is a tool often put forward. This indicator, graduated from 0 to 100, measures whether the market is rather in fear (close to 0) or close to greed (close to 100). Currently, the indicator is showing 32/100 and is still steeped in fear.
But the progress compared to the last few weeks is notable. Last week, the indicator remained confined to extreme fear, close to 20/100. The following graph shows the evolution of this indicator over the last month.
At its lowest, during the bear market, this indicator went down to 6/100. During Bitcoin’s previous ATH, the indicator did not break above 80/100 while its all-time highs are near 95 / 100.
Is this the sign of a recovery?
Let’s say it straight away, no. While there may be some form of correlation between asset prices and social commitment, this variable alone cannot predict a return to the bull market. The increase in engagement reflects, as we have seen, the hope of the community.
But this data is to be put in the current conditions: those of a sluggish market for several weeks. Indeed, despite high-risk macro conditions for risky markets, Bitcoin and the crypto market remained wise for several weeks. An element that some have also made fun of by calling Bitcoin a new stablecoin. This lethargy has had the effect of limiting the social impact around digital assets. And the awakening was powerful. Either way, if the craze continues and signs of a recovery grow, the social dynamics around digital assets could help push the market higher.