Bitcoin “Social Dominance” Surges As Altcoins Struggle

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The data shows that bitcoin’s social dominance has risen to higher values ​​recently as interest in altcoins among investors has waned recently.

Bitcoin’s social dominance is now at its highest level since September 2022

According to data from on-chain analytics firm VirtueRecently, attention has returned to BTC. “Social dominance” is an indicator that tells us that discussions on social media currently involve a specific cryptocurrency (which is bitcoin in the present case).

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A relevant metric here is “social volume”, which measures the total amount of social media text documents that contain at least one mention of a given asset. Here text documents contain fragments related to different types of social media, such as tweets, forum posts, Reddit threads, Telegram chats, etc.

A key feature of the metric is that it counts any text document only once, regardless of how many times the keyword occurs (and of course, there must be at least one mention for it to be counted). For example, if a long forum post contains “BTC” 10 times, the post still only contributes 1 unit to the asset’s social volume.

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Social dominance works by comparing this social volume of BTC (or any other asset) with the combined social volume of the top 100 coins by market cap.

Naturally, whenever this indicator has a high value, it means that bitcoin is making up for a high percentage of the total crypto-related discussions taking place on the internet. Such a trend suggests that the interest in the native cryptocurrency is currently high.

Now, here is a chart that shows the social dominance trend of BTC over the past few months:

bitcoin social dominance

The value of the metric seems to have been quite elevated in recent days | Source: Santiment on Twitter

As shown in the above graph, the social dominance of Bitcoin has increased rapidly recently as most of the altcoins have seen a drop in their prices. BTC has taken a beating so far in March, but its losses are still small compared to other assets in the region.

The current value of the indicator is the highest since September of last year. This high social dominance of the cryptocurrency suggests that BTC has been attracting the attention of investors lately.

Bitcoin’s superior strength against altcoins has also meant that investors have been abandoning alts during the past few weeks and buying into BTC instead.

Sentiment noted, “The historically high bitcoin social dominance has started a market pullback.” If this previous pattern still follows, BTC’s current strength could lead to a sustainable recovery push in the coming days.

btc price

At the time of writing, bitcoin is trading around $22,000, down 7% over the past week.

bitcoin price chart

Looks like BTC has continued to be flat recently | Source: BTCUSD on TradingView
Featured Image by André François McKenzie on Unsplash.com Charts from TradingView.com, Santiment.net





Credit : www.newsbtc.com

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