LunarCrush, a real time cryptocurrency social media aggregator and analytics platform, has highlighted a strong correlation between cryptocurrency social media activity and the asset price change.
In reference to DogeCoin, LunarCrush tweeted out, “Much wow. With soaring social activity, strong price again, and a well-behaved Shiba Inu, $doge has the #1 AltRank”. AltRank is a proprietary formula created by Lunar Crush. It “combines altcoin price performance relative to Bitcoin and social activity indicators”.
The tweet continues to dive into statistics. It states that DOGE jumped 58.8 percent in social mentions, rose 23.1 percent in social engagements, and gained 14.6 in price.
Diving deepere into Lunar Crush’s social analytics on DogeCoin makes it easy to see the correlation between its AltRank trend and price. Looking at the 24 hour chart, we see that DOGE’s AltRank hovers between 40 to 60 with little price movement. Starting at 10AM today, we see spikes in DOGE’s AltRank and price that carry it to the number one AltRank spot. Concurrently, the price jumps most 15 percent.
Social media is not the only factor that can determine a change in price. However, we can see a well established correlation between increased social media presence and an increase in the asset price. Going forward, cryptocurrency social media analytics can be an important tool to determine fundamental views around the asset.
What is DogeCoin?
DogeCoin, also known as DOGE, is a cryptocurrency based on the famous ‘doge’ internet meme featuring the Shiba Inu dog breed. The DOGE team originally created it as a joke currency. However, fans across the Internet quickly adopted it.
Currently, it has a current market cap of over $550 million. This makes it one of the top 50 largest cryptocurrencies my market capitalization.
DogeCoin does not offer much more utility than any other store and transfer of value focused cryptocurrency. However, its status grew tremendously in the crypto space. Even tech billionaire Elon Musk sarcastically eluded to the ‘inevitability’ of DogeCoin being the financial standard across the global financial system. He once even crowned himself the “CEO of DogeCoin” in his twitter biography.
Whether users want to involve themselves in the DogeCoin ecosystem is up to them. However, when analyzing cryptocurrency price movements, using social media statistics is a great way to help gauge the price movement of an asset.