Crypto-Related Discussion Volume On Reddit Strongly Correlated To Price, Says Research
A recent study by the University of Notre Dame and the Pacific Northwest National Laboratory (PNNL) compares the relationship between the speed and scale of cryptocurrency discussions on Reddit.
Published on May 13, the paper claims to be “the first to qualitatively measure and contrast discussion growth about three popular cryptocurrencies with key distinctions in motivation, usage, and implementation – Bitcoin (BTC), Ethereum (ETH), and Monero (XMR) on Reddit.”
The study studied Reddit threads created official subreddits and the broader cryptocurrencies subs between January 2015 and January 2018. The said period also “includes the record high bitcoin price rise at the end of 2017.”
The researchers have claimed that there is a strong correlation between Reddit conversation volume and coin prices. The bitcoin subreddit on average has seen 3,600 comments per day, while the ethereum subreddit and monero subreddit observed 500 and 380 comments respectively.
In the specified time period, bitcoin, ethereum, and monero have had 212,302, 41,792 and 15,035 threads created respectively. The researchers further observed that the bitcoin-related posts start gathering comments at an average of 11 minutes. The ethereum-related threads took 20 minutes and monero threads took 27 minutes.
However, bitcoin post are often short-lived and post about monero lasted more than ones the other two coins. Moreover, the percentage of posts that did not gather any comments, monero-related post observed five times lesser than bitcoin and ethereum posts.
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