A recent report from BlockchainDefender examines the role of online sentiment in the cryptocurrency industry, including its impact on global market capitalization. The report relies heavily on BlockchainDefender’s experience of analyzing online sentiment regarding specific companies and terms.
Online Sentiment Impacts Market Capitalisation
The first portion of the report sets out to confirm that online sentiment regarding the cryptocurrency industry does indeed impact its market capitalization. This is perfectly displayed in a graph with lines for sentiment, trend data (search volume) and market capitalization. There is a clear correlation between all three lines, with one increasing or decreasing only when the others do, including a dip from January to March 2018. The most recent portion of the graph indicates stabilization for all figures.
Online Sentiment By Country
The BlockchainDefender report also compares online sentiment towards crypto in four countries. Of the four analyzed, Japan has the least negative sentiment, followed by the United Arab Emirates, Germany, and the USA.
BlockchainDefender found that the most common online destinations for negativity towards cryptocurrencies were social media platforms, blogs, cryptocurrency industry news websites, forums, cryptocurrency review websites, and crypto company websites and directories.
Online Sentiment Regarding Specific Cryptocurrencies
The report then looks at online sentiment regarding specific cryptocurrencies. To start, BlockchainDefender evaluated the online sentiment towards Bitcoin in four countries. The positive impact was highest in the UAE (followed by Germany, the US, and Japan) while the negative impact was highest in the US (followed by Germany, the UAE and Japan).
The report also evaluates which digital currencies have the most positive and negative online content when measured against each other. The best performer is Iconomi, with the most positive online sentiment. Bitcoin Cash is the worst performer, with the most negative online sentiment.
The final study in the report looks at the impact of a hacking crisis on a specific but unnamed cryptocurrency. BlockchainDefender found that in the West, there was a significant decrease in positive sentiment and an increase in negative sentiment, but this shift was not as notable in the East.
Online Sentiment – Crypto vs Traditional Exchanges
BlockchainDefender also chose to compare the online sentiment towards crypto exchanges and established traditional exchanges. By examining the reputations of ten of each type of exchange in four countries, it became clear that the Google search results display significantly more negative content regarding crypto exchanges than traditional exchanges.
One major factor towards this difference is the lack of content ownership for crypto exchanges, which only own 17.75% of their search results. By contrast, traditional exchanges own 34.38% of their search results, nearly double. This provides traditional exchanges with significantly more control over their online reputation.