The crypto-friendly venture capital firm Andreessen Horowitz (a16z) is again in the cryptocurrency news on our site. This time, they are talking about the crypto social media activity and how it is growing by 200% year-on-year. In fact, the compound annual growth rate (CAGR) for Bitcoin’s price and social media activity regarding cryptocurrencies reached 200%.
We can see that the company (a16z) analyzed 10 years’ worth of data from different social media channels in order to determine whether or not this market has moved in cycles. They found that the crypto social media activity is increasing and made a very deep dive into the way the crypto market works.
So, instead of focusing only on the BTC price in the Bitcoin news, Andreessen Horowitz evaluated the crypto social media activity and focused on innovation as an important metric of measuring whether or not the crypto market actually moves in cycles.
The research was led by one of the main data scientists at a16z, Eddy Lazzarin, who found that so far, there have been three distinct cycles of price growth that are sparking innovation. Even though it is chaotic in nature, these circles were found to have an underlying order – as the price of crypto goes up, new interest and social media activity is created.
The increase in interest involves more people into the space, which creates new projects as well as startups. At the end of the day, these are the entities which lead to a spike in prices. The crypto social media activity and the entire cycle is well illustrated in the image below.
The data collected by the research shows that crypto social media activity is peaking, and it all started in 2011.
When it comes to the above listed cycles, the first one lasted until 2011, the second one from 2011 to 2016 (but peaked in 2013 with a huge influx of new people in crypto) and the third cycle reached its peak in 2017. Now, we are in the fourth cycle.
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