Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Have you ever wondered whether YouTube videos will affect the cryptocurrency market? TIE has identified cases where influencers drive the market, so let’s speak with data.

YouTube continues to be a growth force in the field of crypto assets. Just as well-known influencers stimulate participation in the consumer goods and fashion industries, popular social media figures are also influencing user traders of crypto assets and protocols. In this section, we will examine a series of key themes and their overall contribution to market sentiment.

It should be noted that there are several factors that determine the price of crypto assets. Although it is very simple to assume that influencer A talks about the price increase of crypto assets B, there are more stories. Overall data shows that after other market factors have driven prices up, influencers may have played a greater role in helping maintain price stability due to the trust and connection they have established with their audiences.

Imperfect storm

The data in Figure 1 shows the discussion that emerged on one of the most popular cryptocurrency YouTube channels before asset prices rose. Bitboy Crypto, with the largest and most engaged users, may be one of the few people with the ability to influence prices. Since the beginning of 2021, his number of views per video has increased by 670%, from an average of more than 21,000 views per video to an average of 141,000 views per video, the largest increase among all cryptocurrency YouTubers .

The host Ben Armstrong is one of the most respected thought leaders in the industry. He is known for his in-depth research and integrity. Although some people may look for collusion, he is completely open and transparent about which companies sponsor the channel and in what capacity. Throughout his program, they are all displayed on the screen. Therefore, there is more evidence that his knowledge and analysis led him to conclude that Cosmos is ready to explode, and the trust he has established with the audience makes many people feel at ease about investing in crypto assets.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 1. Ben “Bitboy Crypto” Armstrong YouTube live broadcast

“Cosmos is a project where I want to do more. I am ready to start working on Cosmos. Actually, can we contact Cosmos? Let Heather contact Cosmos. I want to work with Cosmos. I want to become Cosmos. Consultants or partners, because I like Cosmos, they didn’t get the honor they deserve, and I’m ready to promote this.”

Armstrong has won the respect and trust of the audience by continuing to provide thoughtful suggestions to support or oppose price increases, trends, and large industry players. It should be noted that this review is not an endorsement of Bitboy Crypto, but a review of existing facts.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 2: Total output of encrypted video content

Figure 2 shows the increasing number of encrypted asset-related videos released since the beginning of 2021. This quarter, the number of YouTube videos related to cryptocurrency each week reached a record high. In the past few years, YouTube has become the central hub of the encryption industry and an unofficial TV network. A series of influential people often get tens of thousands of page views and large audiences, and they often participate deeply in several other platforms. Depending on the influencers, the increase in content is accompanied by emotional mobilization, and the average price of encrypted assets will either be revised or dropped significantly.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 3. Changes in views/videos of 100 YouTubers focused on cryptocurrency from 2020 to 2021

By reviewing and tracking a select panel of 100 encrypted YouTubers, a series of trends began to emerge. The data in Figure 3 shows that each YouTuber’s channel views increased by an average of 260%. High-end channels, such as the bottom four influencers of Bitboy Crypto, have also seen a significant increase in average views, including Coin Bureau (+250%), Altcoin Daily (+260%), Sheldon Evans (+200%) and JRNY Crypto (+1440%). In addition, the data in Figure 3 also shows the growth of relatively unknown channels, such as Investing Made Simple, whose average views have increased from approximately 1,000 per video to more than 23,000. Finally, among the analyzed cryptocurrency channels, only 19% of the channels have seen a decline in average ratings.

Do all YouTubers have the same influence?

Generally speaking, the larger the user base of a channel, the more average views of its videos. However, the size of its followers is not an indicator of the cohesion of the audience as a group. It also does not indicate that it is possible for the group to take action and affect the price of a token. However, in some cases, there is a loose correlation.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 4

The left part of Figure 4 lists the number of subscribers to each of the 100 channels analyzed and the average number of views for each video. The data on the right shows the comparison between the number of users and the average return rate of the token mentioned in the video within 48 hours after the broadcast. Although there is a strong correlation between the number of subscribers and the number of views of each video, just because a YouTuber has a high number of subscribers and views does not necessarily mean that their videos will precede the market trend.

Although the more subscribers of a channel, it usually indicates that their videos will have more views, but the data in the left part of Figure 4 also shows that due to the large difference in the number of their subscribers, the channel does not have a consistent price of encrypted assets Influence. In addition, the notable outliers are Luno and TheChartGuys. The former is an encrypted YouTuber. Relative to his subscribers (19100 people), the number of views per video is relatively high, while the latter is relative to subscribers (166K subscriptions). ), the number of pageviews is relatively low. Luno has some obviously popular videos that cater to cryptocurrency beginners, such as: “What is a smart contract?” and “What is a blockchain?” And TheChartGuys uploads three videos per day on average, affecting every Video views.

Finally, the data on the right part of Figure 4 shows that the number of subscribers has no direct relationship with the price. The graph shows the percentage change in the price of crypto assets within 48 hours after YouTuber uploads videos focused on specific crypto assets. Although it is challenging to infer causality or correlation through this analysis, it makes recommendations for the channel’s understanding of the market. This is the case with VoskCoin (337,000 subscribers, average page views XXX). When the channel focuses on a particular asset, its price increases by an average of 11% in the following 48 hours. The video performance of Upshod (71,000 subscribers, XXX average views) is similar. Starting from January 2021, it is one of the most viewed videos on DogeCoin.

Higher pageviews = higher market value

In Figure 5, the data shows that the most viewed videos are concentrated on specific encrypted assets, and the number of views increases with the increase in the market value of encrypted assets. This raises a key question: Does YouTuber focus on crypto assets with higher market capitalization, or does YouTuber help increase the value of specific crypto assets as a whole?

Generally speaking, the data in Figure 5 shows that crypto assets with higher market capitalization tend to get the highest number of views on YouTube. However, there are also some noteworthy outliers. Dogecoin (as of July 12, 2021, the market value is about 26 billion U.S. dollars), although its market value is relatively low, but it has obtained the same amount of page views as Bitcoin (as of July 12, 2021, about 600 billion U.S. dollars). And attention to XRP (as of July 12, 2021, about 47 billion U.S. dollars) related video views is one of the lowest levels.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 5. The market value of different cryptocurrencies compared to the average number of views of the video when the video discusses specific crypto assets. The correlation (rho = 0.73) is significant (p <0.01)

The role of pageviews and emotions

In order to further understand whether YouTube activity has played a role in increasing or reducing the price of encrypted assets, or whether Youtube activity follows the market (i.e., leading or lagging indicators), the data in the address of Figure 6 observes the number of YouTube views and the number of timeouts of sentiment videos. And compared these indicators with price performance. Test encrypted assets selected from five categories (Meme, Payment, Infrastructure, DeFi, Data Services, and Media), calculate sentiment by viewing the title, description, and comments of the video, and assign a score: 1 point is positive sentiment, 0 points are negative emotions.

Illustration: 6 pictures analyzing the influence of YouTube celebrities on cryptocurrency

Figure 6. Observe the prices, YouTube views, and YouTube sentiment of six crypto assets

Before Bitcoin and Ethereum reached their all-time high prices, YouTube sentiment had already shown a peak. However, as prices fell, sentiment dropped significantly. This shows that sentiment may be a leading indicator of price increases, but it is a lagging indicator of price declines. In addition, before prices rose, positive sentiment videos created hype around assets, and as prices fell, headlines and descriptions focused on negative aspects. When video views are at their lowest point, the peak of sentiment appears again, and vice versa, which may indicate that when few people discuss these crypto assets, YouTubers are still loyal and active information providers, and when the market collapses At that time, many YouTubers continued their negative attitude.

Further, cottage coins (Aave, Litecoin, Cardano and Dogecoin) mode, and not as bits credits Ethernet Square as consistent.

  • AAVE has maintained a consistent sentiment for most of this year, regardless of the price, its sentiment tends to closely follow the price.
  • Litecoin showed a small increase in page views before experiencing substantial growth, however, sentiment declined during this period.
  • Cardano followed Ethereum , showing an increase in sentiment and a decrease in page views before its price peaked in May.
  • The sentiment of Dogecoin has been lagging behind the price. The data shows that the peak is the same as the price trend, and the price drops sharply.

     

Note, the original author is Erik Saberski, the following is the full text compilation. This article is an excerpt from the second quarter report of The TIE & @eToroUS.

 

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