The world of cryptos is highly volatile and dynamic. Various factors such as global news, political events, and technological progress influence its market price. It’s vital to research the currencies you use or have an interest in. This will help you determine which has the most positive and negative trader sentiments.
Now, let us learn more about the psychology of crypto trading and its effects on users.
How Sentiment Affects Market Behaviour
Trader sentiment analysis is a great tool. This was created for investors trying to get insights into how the larger market sees certain cryptos. This study helps in understanding which coins bring out favourable or negative emotions among traders.
It also gives a sentiment score. The score measures the emotional state of posts on cryptos. Also, this might affect their market price too. As per the study, Uniswap had the most percentage of favourable posts (35%). and Pax Dollar had the lowest (3%) percentage.
In addition to this, Ethereum, TRON, and BNB are the most famous cryptos with the most posts. On the other hand, The Sandbox, NEAR Protocol, and Internet Computer are less popular with fewer posts.
Overall, the research provides an overview of the sentiment and popularity of various cryptos across social media users.
Cryptocurrencies with the positive trader sentiment
Let’s have a look at positive trading sentiment and the top currencies with positive ratings.
Uniswap wins the race
The crypto that stands at the top spot is Uniswap. It earned the highest favourable trader sentiment of all cryptocurrencies. According to the study, it had 35% of positive reviews online between October 2022 and January 2023.
This cryptocurrency appears to have the best trader sentiment by a wide margin. As matter of fact, no other currencies even reached the 30% mark. Yet, it’s not surprising to know that Uniswap is completely compatible with all ERC-20 tokens. Its simple form makes it a very user-friendly currency to work with.
Cryptocurrencies running second
Crypto trio Ethereum, NEAR Protocol, and The Sandbox stand in second place. Ethereum got 15% less than, Uniswap, and received 20% of favorable online conversations. The same is true with NEAR Protocol and The Sandbox. Both earned a 20% favourable attitude and positive sentiments.
Next down the line are TRON and Internet Computer. There are 17% of positive online discussions regarding these currencies. Then comes UNUS SED LEO and Flow (15%), and finally Cosmos and Solana (14%).
Cryptocurrencies with the most negative sentiment
Now that you already have an idea about the currencies that earned good reviews from users, let’s look at the otherwise. Let us now dwell on the cryptos with the most negative sentiment.
Polkadot received the lowest trader sentiment
The Polkadot crypto is the coin with the highest negative trader sentiment. In the cryptocurrency market, it scored only 9%. This is most likely due to its constantly fluctuating prices, which make it a risky investment.
Solana, Chainlink, and OKB tied for second place with 8% negative sentiment. Nonetheless, Solana features in both the top negative and positive lists. Consequently, indicating that this currency is clearly having varying views online. This can happen to other cryptos as well.
Then there’s Bitcoin which stands at 7%, matching the Dollar Coin’s negative trading sentiment percentage. Dogecoin and Polygon came in at 6% and 1%, respectively. TRON and BNB, on the other hand, came last at the 5% mark.
Sentiment Analysis
Research carried out by different websites such as Smart Betting Guide proved to be helpful in knowing which cryptos saw the most commendatory and negative trader sentiment. They studied over 840,000 social and editorial posts to know which currencies had the most positive and negative internet interactions. The top 50 cryptos from Coinmarketcap on January 9, 2023, were taken into account in the study. And any currencies with fewer than 1000 postings were removed.
Moreover, Linkfluence‘s internal sentiment analysis undertook the sentiment study of cryptos. Based on natural language processing (NLP), this aided in understanding the interactions and opinions. The study which was done globally across multiple online sites including online forums, Twitter, Facebook, and Instagram. Also, news and media items and comments on media pieces were included.
The research of the smart betting guide also deduced that sentiment about cryptos can change quickly over time due to economic events, with prices influencing traders and investors. Still, knowing the data is useful in making a decision about which cryptos to buy, sell, or keep.