Cryptomustar
Sunday, July 3, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Cryptocurrency

Here’s how Twitter and active wallets predicted insane DeFi gains

by admin
September 18, 2020
in Cryptocurrency
0
Here’s how Twitter and active wallets predicted insane DeFi gains
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter


Predicting the crypto markets does not have to be a hard science necessarily. New research shows a simple strategy of tracking sentiment on social media, such as Twitter, about certain tokens and projects could have proven a profitable venture for traders.

But as always: It works until it doesn’t.

RELATED POSTS

Top 10 VC firms have ownership in 38% of all unicorns

Korean Students, Lead in Resolving the US Manpower Shortage through HR Blockchain Group, COSMETA?

Predicting DeFi token movements

According to a report by decentralized application tracking firm DappRadar, social media can be a “powerful tool” for predicting token price movements, especially as the DeFi space remains heavily driven by retail hype.

The firm used a proprietary method to map DeFi token prices against those of Bitcoin, alongside weighting them with social volumes, Twitter follower changes, and active dApp wallets.

In the case of decentralized lending provider Aave (LEND), Dappradar ran regression analytics using the four metrics. Its findings? A massive 75.9% of LEND price fluctuation was majorly impacted by the two metrics — Twitter followers and Aave active wallets.

Data from the survey. Image: Dappradar

The firm found a similar result on stablecoin lender Curve, whose CRV token nosedived recently by over 84% compared to its all-time high. It currently hovers at $2, as per CryptoSlate’s price tracking page.

The firm said, “Similar to Aave, we can observe the same trends of correlation and regression analysis in Curve on the provided metrics. All four metrics have a positive correlation to CRV price.”

CRV has fallen over 84% from its ATHs. Image: TradingView

It added Curve’s Twitter follower changes and active wallets showed the strongest correlation of 86.4% and 84.7% respectively with each other. The firm further noted:

“While running regression analysis for the Twitter followers and Active wallets, the results were exceptional, indicating that 80% of CRV price is majorly impacted by these two metrics.”

Meanwhile, MKR, the governance token of MakerDAO, was impacted the more by Bitcoin price and Twitter follower change, as opposed to the rise in active wallets having an impact on  MKR prices.

Do Twitter followers affect price? Yes.

In conclusion, the firm said that the narrative Bitcoin prices affecting altcoin prices continue to hold true. However, active wallets and the increase in Twitter users serve a better correlation for the prices of some DeFi altcoins such as LEND and CRV.

However, the firm did point out some limitations that existed in the calculations, such as the tests being conducted on only three DeFi tokens and that social media sentiments were taken only from Twitter, with sites like Reddit not included.

Still, it’s alpha for those who dare.

Like what you see? Subscribe for daily updates.



Source link

Tags: activeDeFiGainsHeresinsanepredictedTwitterwallets
ShareTweetShare

Related Posts

Top 10 VC firms have ownership in 38% of all unicorns

Top 10 VC firms have ownership in 38% of all unicorns

by admin
July 2, 2022
0

In a bid to answer the question of where does big venture capital money go to, a new analysis...

Korean Students, Lead in Resolving the US Manpower Shortage through HR Blockchain Group, COSMETA?

Korean Students, Lead in Resolving the US Manpower Shortage through HR Blockchain Group, COSMETA?

by admin
July 1, 2022
0

COSMETA - A HR Blockchain Company Willing to Enter the Metaverse Blockchain technology is changing many industries, and Human Resources...

AssetDash – An All-In-One Portfolio Tracking System for Modern Investors

AssetDash – An All-In-One Portfolio Tracking System for Modern Investors

by admin
June 30, 2022
0

The development of the crypto sector has presented users with a vast choice of new products to track your portfolio...

Nansen report reveals Terra caused the stETH depeg and crippled Celsius, 3AC

Nansen report reveals Terra caused the stETH depeg and crippled Celsius, 3AC

by admin
June 29, 2022
0

The source of the current market volatility and liquidity issues with companies such as Celsius and Three Arrows Capital...

Traditional hedge funds consider regulatory uncertainty biggest barrier to entry in crypto

Traditional hedge funds consider regulatory uncertainty biggest barrier to entry in crypto

by admin
June 28, 2022
0

There have never been more traditional hedge funds investing in crypto, but around two-thirds are still hesitant to enter...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

SecretSwap Is the Secret Network’s Answer to DeFi Privacy

SecretSwap Is the Secret Network’s Answer to DeFi Privacy

February 17, 2021
The House Looks Into Crypto's Energy Impact

The House Looks Into Crypto's Energy Impact

January 18, 2022
‘First Steps’ Being Made to Power Bitcoin Mining With Volcanic Energy — CoinDesk

‘First Steps’ Being Made to Power Bitcoin Mining With Volcanic Energy — CoinDesk

September 29, 2021
A Rebuttal To Paul Krugman’s Tone-Deaf And Out-Of-The-Loop Opinion Piece

A Rebuttal To Paul Krugman’s Tone-Deaf And Out-Of-The-Loop Opinion Piece

February 1, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Bitcoin Legalization Pushed By Mexican Senator, Despite Central Bank’s Opposition
  • 3 Lessons From The Oslo Freedom Forum: BTC Is Different – Neigut, Alden, Feinstein
  • Bitcoin Funding Rate Turns Deep Red, Short Squeeze Soon?
  • Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%