- Tweet volume is an important metric
- Abnormal tweet volume in real-time on solid factors hints of a rise in values
- Tweet Volume can serve as data intelligence for an intelligent investor
A high tweet volume could mean that the asset is about to soar in some situations, but it is not the universal truth, and investors must always keep this possibility in mind.
On Crypto Twitter, a sudden surge of publicity towards a coin is the aftereffect of dramatic price action. Often surging assets attract the attention of traders. They take over Twitter conversations, producing positive feedback loops that further prop up the momentum.
A perfect example is KuCoin Shares (KCS) which went up from $7.40 on July 4 to $14.20 on July 14. As a result, there was a staggering increase in average tweet volume, totaling more than 1,100% month-to-month.
One more example is Axie Infinity (AXS). It was a big winner in terms of price, and its value surge added 456% in tweet volume over the same period. Again, the tweets rallied the rallies’ dynamics, closely following the price chart with the tweet volume curve.
In some cases, the connection between the two factors can be reversed. Often Twitter communities pick up titbits of the news or new equations, which the broader market is yet to absorb. It produces a spike in tweet volume, which precedes a price increase. Therefore is there a method to sniff out these dynamics and get a head start over the other competitors?
Data intelligence for early birds
Tweet volume is an important metric that is used to calculate the VORTECS™ score. It is an algorithmic indicator that compares complex market and social activity patterns of an individual digital asset to many years worth of historical data.
The algorithm is expansive and evaluates market outlook, price movement, social sentiment, trading activity, etc. After incorporating all the above data, a score is generated that shows how suitable conditions of the observed combinations are for any coin at any given time. In addition, there is a space on the Markets Pro dashboard featuring assets that see abnormal tweet volume in real-time. In such a case, traders are alerted to look at that token and judge whether its price is likely to go up soon.
Here are three examples from the last thirty days where Twitter activity foreshadowed price action.
Crypto.com Coin (CRO), a couple of hours before the coin flashed on Markets Pro’s Unusual Twitter Volume box (red circle in the chart), revealed that CRO became the first digital asset platform to partner with the Ultimate Fighting Championship or UFC.
The launch of oneFIL, a stablecoin for the Filecoin community, around that time triggered a surge of tweets referencing Quantstamp (QSP) around June 1. The protocol behind oneFIL is audited by Quantstamp. The QSP generated just a handful of Twitter mentions per day, but on July 1, it got over 150 tweets, immediately putting it on the Markets Pro radar (red circle in the graph). The crypto coin gave a scintillating performance in the following days, reaching $0.034 on July 4, continuing to push further.
Flow Dapper Labs
Flow Dapper Lab’s (FLOW’s) peak tweet volume came late on July 10 (red circle in the graph) in response to a highly successful week that the asset had, more than doubling its price from $9 to over $18.