Santiment analysts record decline in the popularity of cryptocurrencies on social media

What’s new? Analysts at Santiment said the popularity of discussion of crypto assets on forums and social media has declined. According to them, this implies that fear of missing out (FOMO) on profits has not affected retail investors, meaning markets are probably not overheated yet. Analysts also note that the crypto market has been a “sea of green” this week, referring to the growth of most digital assets. For example, according to Binance, bitcoin was up by 8,79% in seven days, while Ethereum was up by 28%. Other altcoins also joined them, with ApeCoin up by 40,96%, Fantom up by 36,64%, Ethereum Classic up by 77,55%, and THORChain up by 25,93%.

🥳 #Bitcoin is +12% & has jumped back over $23k this week. The bigger story has been #Ethereum (+33%) & #altcoins like $ETC (+69%), $APE (+39%), $FTM (+33%), & $RUNE (+31%). As long as social volume stays down, the crowd isn't having #FOMO fever just yet. https://t.co/nf1qN1XuQy pic.twitter.com/V91bDZKScG— Santiment (@santimentfeed) July 21, 2022

FOMO (Fear Of Missing Out) is a syndrome of lost profits. It has become particularly prevalent in the age of the Internet and social media. In the crypto space, this syndrome can occur in traders who see possible gains during an uptrend and seek to buy assets without thinking through all the details.

What else did analysts add? Santiment also noted that Ethereum investors changed their behavior after July 13, when its exchange rate fell to $1000. According to the company, institutional investors who own between 1000 and 10 000 ETH have started to reduce their balances. Those with 10 to 100 ETH are buying the asset, while those with 100 to 1000 ETH are replenishing their wallets after the initial sale of assets. According to analysts, small holders (0-10 ETH) are not doing anything, they were probably scared by the latest drop and are still feeling anxious.

As of July 23, 11:30 UTC, ETH is trading at $1534, the asset’s rate down by 6,02% in 24 hours.

Earlier, a former BitMEX CEO Arthur Hayes released a report predicting a retest of the crypto market bottom. According to him, the new bottom will be reached even before the Federal Reserve and the US Treasury announce their monetary policy easing. He also added that bitcoin’s recent sharp growth caused a liquidation of short positions.