Data shows that Cardano is experiencing stronger positive sentiment than other major cryptocurrencies like Bitcoin and XRP.

Cardano Sentiment is currently at its highest level of 2024

According to data from analytics firm Santiment, sentiment around cryptocurrencies has improved following the rally experienced by Bitcoin and other currencies.

The indicator of relevance here is “Weighted Sentiment,” which itself is based on two other metrics: Sentiment Balance and Social Volume. The first of these, Sentiment Balance, measures the net sentiment around an asset currently on major social media platforms.

This indicator works by running posts/threads/messages on these platforms through a machine learning model to determine whether they are positive or negative about the cryptocurrency. It then subtracts the two types of posts to find the net situation on social media.

However, there is a flaw in this statistic. It is not always representative of the true sentiment shared by the majority of users. It can only reflect the mindset of those who participated in a discussion (i.e., who posted messages).

The Weighted Sentiment also includes the second indicator: Social Volume. This metric tracks the total number of posts that talk about the given coin. In other words, it tells us how many conversations the asset is experiencing at the moment.

The Weighted Sentiment takes the Sentiment Balance and weighs it against the Social Volume. The indicator’s value will therefore only register a peak (in both directions) when there is not only a high net sentiment on social media, but also when a large number of users are participating in the discussion.

Here is a chart showing the trend in weighted sentiment for the top five coins, Bitcoin (BTC), Ethereum (ETH), BNB (BNB), XRP (XRP), and Cardano (ADA), over the past few months:

The value of the metric appears to have been the most positive for Cardano in recent days | Source: Santiment on X

As shown in the chart above, sentiment around these top coins has recently been on the rise. Cardano in particular has enjoyed a jump in its Weighted Sentiment with the latest market recovery.

Currently, the indicator for ADA is standing at 1.69, while ETH, the cryptocurrency that social media users are the second most optimistic about, has it at around 0.80.

While the positive sentiment suggests that investor confidence in ADA remains high despite the company’s poor year so far, excessive hype has proven to be a negative sign in the past.

Assets like Cardano and Ethereum, which are seeing a notable amount of bullish sentiment, may therefore not be in the best position to see further upside. Bitcoin and XRP, on the other hand, still have their Weighted Sentiment at only mildly positive levels, which could potentially work in their favor.

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Cardano has seen a jump of over 4% in the past 24 hours, bringing its price to $0.344.

Looks like the price of the asset has gone up over the past day | Source: ADAUSD on TradingView

Main image from Shutterstock.com, Santiment.net, chart from TradingView.com