Crypto fans love to defend their favorite assets. Just look at the XRP army and the LINK Marines. Does the hype expressed on Twitter match up with high trading activity though? A few altcoins throughout 2020 revealed mixed results. Using information from The Tie, a crypto data platform, Cointelegraph looked at assets’ Hype-To-Activity Ratios matched against their prices.
“Hype-To-Activity Ratio measures the number of tweets a particular coin has per each $1M in reported trading volume of that coin,” Joshua Frank, CEO and co-founder of The Tie, told Cointelegraph, adding:
“As of August 15th 2019 the average Hype-To-Activity Ratio in crypto was 1.02. In other words, on average cryptocurrencies see 1.02 tweets per $1M in reported trading volume.”
Twitter often hosts countless discussions on various assets at any given time. Announcements and other events also factor into the equation. Sometimes, trading activity and hype travel in tandem, while other times, the two fall out of balance.