By Unlike traditional markets, the cryptomarket is a specific ecosystem where participants are constantly creating social data and analytics. Conversations and engaged communities lead to strong impacts on the market sentiment and influence the reputation of coins and tokens.
Correlations have been demonstrated in multiple studies showing that news or discussions from Crypto Twitter and Reddit influence market sentiment and crypto prices. Crypto traders need effective tools and analytics in order to extract insights from this growing data set, and improve their research and due diligence.
Predicoin, a new platform in crypto analytics, helps crypto investors save time by offering a complete dashboard that summarizes both social and technical data. Predicoin collects and analyses raw data from crypto market economics, news, and social networks, resulting in a new range of sentiment indicators and social insights.
The team behind Predicoin has a strong expertise in technical engineering. They’re building the software they use to research coins for investments. With expertise in data mining and AI, the team continues to work on finding patterns and trends between price changes, news, and sentiment.
SentScore: a new sentiment analysis indicator for the cryptocurrency market
SentScore, the sentiment indicator formulated by Predicoin, is calculated from a combination of 5 verticals:
- News: Integrates content from over 100 cryptocurrency websites and information blogs every hour to calculate the sentiment around each mentioned cryptocurrency.
- Social conversations: Tracks and derives sentiment for discussions on Cryptotwitter and Reddit.
- Technical analysis: Combines traditional technical analysis indicators on a coin’s price.
- Fundamentals: Evaluates a coin’s strength by looking at macro and microeconomic factors: market cap, volume, developer activity and community engagement.
- Buzz: Gauges the short-term popularity and long-term trending nature of a coin.
Track the cryptomarket sentiment:
Predicoin provides multiple data analytics tools to help users follow sentiment across the cryptocurrency markets. The following chart shows a snapshot of the cryptomarket’s sentiment and price evolution of all coins tracked by Predicoin:
The Predicoin pentagon (at left) shows the weight of each vertical used in the calculation of the SentScore. On the chart (at right), crypto investors can follow the general SentScore in addition to news, social and buzz individually.
Users can then focus in on individual coins. The SentScore Evolution chart represents the evolution of the XRP price and its associated SentScore. Here, the SentScore clearly precedes and correlates with XRP price movement.
The News Volume and Social Media Volume charts represent the number of news articles or social discussions related to a coin, with sentiment polarity to provide a graphic that quickly relays both content volume and sentiment.
While offering a suite of data analytics tools, Predicoin also specializes in aggregating and displaying the most influential crypto news and social content. Predicoin users can filter content related to a specific coin, social platform, timescale and type of influencer. This functionality is essential to avoid missing viral discussions and precious insights on favorited cryptocurrencies.
The platform is in beta and has just been published online. The team is constantly improving its scoring algorithms and they have plans to add more data sources soon.
“Following the reputation and sentiment surrounding a coin or token, understanding correlations and accessing actionable sentiment insights will help our users make better investment decisions,” says Yohann Merran, Predicoin’s CEO, “the abundance and diversity of available data represents a strategic opportunity to get an edge on the crypto market.”
Predicoin is on the way to becoming an essential platform for crypto traders by helping them detect sentiment change and save time while doing their research.
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