Crypto Market Sentiment is Back in the Positive Zone; BNB Wins the Week

  • 21 December 2020, Monday, 10:06
Crypto Market Sentiment is Back in the Positive Zone; BNB Wins the Week
Source: iStock/Nikada

The end of the year is nearing, the market is hit with increased volatility, and the market sentiment is climbing. The combined moving 7-day average crypto market sentiment score (sentscore) for the top 10 coins by market capitalization is back in the positive zone, even if just barely. Last week, this sentscore stood at 5.46, and today we find it at exactly 6, according to data provided by crypto market sentiment analysis service Omenics.

The improvement in market sentiment is seen across the board. While entirely red seven days ago, over the past week, all coins turned green. Binance coin (BNB) undoubtedly wins the week, seeing its sentscore increase 24%. Polkadot (DOT) is in the distant second place with a rise of 14% - both of these are bouncing back up after seeing the first and the third biggest fall a week ago, respectively.

Meanwhile, four more coins went up more than 10%, though not by far, all increasing between 10% and 11%, these being tether (USDT), stellar (XLM), litecoin (LTC), and chainlink (LINK). The least to have increased this week is XRP.

As for the highest sentscore winner, there is no change here - bitcoin (BTC) continues to lead the list with the score of 7.7. Ethereum (ETH) stays in the positive zone with bitcoin, sitting in the second place with 6.8, but the two are joined there by polkadot, having a score of 6.3, as well as cardano (ADA) and its score of 6. This week we are also back to having no coin below the score of 5.

Sentiment change among the top 10 coins*: Interpreting the sentscore’s scale: - 0 to 2.5: very negative - 2 to 3.9: somewhat negative zone - 4 to 5.9: neutral zone - 6 to 7.49: somewhat positive zone - 7.5 to 10: very positive

The picture is even greener in the last 24 hours, where the combined sentscore for the top 10 coins stands at 6.3. In comparison, last Monday it was 5.64. Even though only four coins (BTC, LTC, BNB, and DOT) have increased in this time period, and the increases are relatively small (1.7% on average), six out of ten coins are in the positive zone. Bitcoin is near the sentscore of 8 (7.8), and ethereum has a sentscore of 7. DOT, LTC, XRP, and ADA are also in the positive zone. The remaining four coins all have scores between 5.5 and 5.9.

Daily Bitcoin sentscore change in the past month:

The situation turned for the better for the rest of Omenics' list too. There are 26 other coins outside of the top 10 list, out of which only 7 saw a drop in their respective sentscores. In the positive zone we find NANO (6.4), synthetix (SNX) (6.2), and AAVE (6.1) - same three coins as last week. Unlike last week, however, there are no coins in the negative zone, with the lowest sentscore on the list being 4.2.

* - Methodology:

Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms. As their website explains, "Omenics aggregates trending news articles and viral social media posts into an all-in-one data platform, where you can also analyze content sentiment," later adding, "Omenics combines the 2 sentiment indicators from news and social media with 3 additional verticals for technical analysis, coin fundamentals, and buzz, resulting in the sentscore which reports a general outlook for each coin." For now, they are rating 36 cryptocurrencies.