Chainlink Sees Surge in Social Media Attention, Despite Drop in Holders

Recent data indicates that Chainlink has gained significant traction in social media discussions, which could be a positive sign for its price.

Santiment, an analytics firm, highlighted a recent surge in Chainlink’s “Social Dominance,” a measure based on Social Volume.

🔗📊 LINK’s discussion dominance across social media is officially at its highest level of 2024. Combined with declining total holders, this is generally a bullish signal if markets stabilize this upcoming week. The asset sits at $10.22, a -18% drop since its Aug 18 local top. pic.twitter.com/CNni4rz2Mr

— Santiment (@santimentfeed) September 8, 2024

Social Volume reflects the amount of discussion about a term across major social media platforms by counting unique posts rather than total mentions. This approach aims to provide a clearer picture of widespread engagement rather than skewed by niche discussions.

Chainlink’s Social Dominance, which tracks the share of social media talk about the top 100 cryptocurrencies attributed to Chainlink, has been on the rise. The metric now accounts for about 1% of the total Social Volume among these top cryptocurrencies, reaching its highest level in 2024.

Despite this increase in social media attention, the number of Chainlink holders has decreased. Over the past month, approximately 1,867 addresses have been emptied.

Santiment attributes this decline to capitulation among smaller holders, suggesting that while social media interest is growing, the exit of small investors could signal a bullish trend if the market stabilizes in the coming week.