Top 3 cryptocurrencies seeing uptick in social volume: Ethereum, XRP, Binance Coin
- Bitcoin network’s social volume has declined, making way for Ethereum, XRP and Binance Coin.
- Altcoins continued their recovery by varying degrees with rising confidence from crypto market participants.
- BNB price rallied 10% in response to the Binance hearing, which will be updated on Thursday.
Social media attention has recently turned to Ethereum (ETH), XRP and Binance Coin (BNB) at the expense of Bitcoin, a sign of increasing confidence in these altcoins among crypto traders even as the price of the most popular cryptocurrency holds above the $25,000 level.
Recent news affecting these altcoins is the main reason behind the surge in social media mentions. Binance’s hearing on Tuesday marked an important milestone for holders of BNB, the exchange’s native token. Judge Amy Berman Jackson, of the D.C. District Court, asked the Securities and Exchange Commission (SEC) and Binance to continue negotiating and to submit a status update by Thursday.
BNB price rallied 10.5% in response to the hearing.
Similarly, the release of the so-called Hinman emails, key documents for Ripple’s defense against the SEC, fueled a temporary bullish sentiment among XRP holders.
Also read: XRP volatility surges as Hinman documents support Ripple's case against the SEC
Ethereum, XRP and Binance Coin witness spike in social volume
Bitcoin’s social volume declined after the asset’s price rally in March, according to data from crypto intelligence tracker Santiment. Social volume is built on top of social data collected by the tracker. The platform combs text documents containing the asset name at least once, on Twitter, Telegram and Reddit.
As seen in the chart below, Bitcoin social volume increased sharply in mid-March, weeks before reaching its recent price peak of $30,899.76 in April.
ETH, XRP and BNB social volume
A spike in social volume is typically followed by a rally in the asset’s price in the weeks following a spike in social volume.
ETH, XRP and BNB registered an increase in social volume after Tuesday’s events. The Hinman documents, key to Ripple’s defense against the SEC, were unveiled for public view. Their content fueled a bullish sentiment among XRP holders and the altcoin yielded 6% gains before pulling back. Find out more here.
The Hinman documents shed light on the regulator’s stance on Ethereum and why the asset was considered a non-security, putting the second-largest altcoin by market capitalization under the spotlight too. ETH price held above key support at $1,724, trading at $1,739.57 at the time of writing.
SEC and Binance gear up for Thursday update
On Tuesday’s hearing, Judge Amy Berman Jackson asked the SEC and Binance to continue negotiating to arrive at a compromise. The Judge asked the two parties to submit a status update by Thursday.
In the court hearing, the Judge expressed skepticism about the US financial regulator’s move to enforce its powers on Binance and called it “inefficient and cumbersome,” according to a report from the hearing by The New York Times. These comments fueled hopes among Binance’s native token holders, pushing BNB price higher.
BNB price climbed from $228.90 to $252.90, or 10.5%, since Tuesday’s hearing. The exchange’s native token is therefore on track to recoup its recent losses and yield gains for holders ahead of Thursday’s update.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
