In 2023, the cryptocurrency world experienced many ups and downs. In this regard, Santiment’s insights provide a guide for navigating the market in 2024. The report examines Layer 2 solutions’ rising popularity, meme coin interest and market peaks, and other major cryptocurrency industry narratives.
📊 In a year full of many more ups than downs, 2023 saw an understandable surge in #bullmarket calls. Our latest insight covers the rise of #Layer2 solutions, #memecoin interest correlating with tops, and plenty more to help you trade effectively in 2024. https://t.co/oQ6whcqWCJ pic.twitter.com/uXowzQsXMg
— Santiment (@santimentfeed) January 8, 2024
Santiment Analysis: Crypto Markets React to Interest Rates and Inflation
Interest rates and inflation are crucial drivers of crypto markets, usually moving in a cycle with the Federal Reserve’s interest rate decisions. The timing of stablecoin de-pegging and peak public interest in this story were notable in 2023. This alignment heightened pessimism to unprecedented levels, demonstrating the power of events on market behaviour.
Layer 2 solutions became popular during March and April. Around April 14, the mood rose, showing a strong desire to “purchase the decline.” However, the dip occurred later, showing how social emotion affects market behaviour. A rise in interest indicates community anticipation of enhanced economic transactions, which could lead to acceptance and advancement.
SOL ecosystem growth helped Layer 1 (L1) platforms garner attention this year. It is important to note that market events and Twitter API issues in the weeks following June 5 affected social data. This incident showed how external platforms and influential figures like Elon Musk can generate volatility in the cryptocurrency market.
Another captivating memecoin story emerged. Two significant social attention spikes occurred on May and December 15th. Note the correlation between meme coin interest and market top conditions, even though the exact meme coins were not named. This correlation emphasizes the importance of finding separate signals in cryptocurrency social channels despite constant social interaction.
WEB3 Social Network Shines Amidst Uncertain Future
Although not the dominant topic of conversation, Real World Assets (RWA) showed strong social engagement, suggesting its peak is near. RWA’s “social traction” chart showed rising and waning attention, indicating industry growth.
Social analytics show that Binance and its CEO, Changpeng Zhao (CZ), shaped the market. Binance, Coinbase, and Kraken, three major CEXs, faced regulatory scrutiny in 2023. Commercial domination makes these platforms important and vulnerable to regulation.
AI was popular in early 2023, then declined, and then returned toward the conclusion. AI’s universality indicates its commercial dominance and potential for major future effects. Friend.Tech became a top WEB3 social network and generated income from user profiles in 2023. Maintaining present achievements is crucial, even when future outcomes are uncertain.
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