Ripple,XRP (XRP): As the world continues to embrace blockchain technology and cryptocurrencies into the FinTech ecosystem, one crucial element of growth in the industry is lacking support; sociability. Looking at most blockchain projects today, the prime focus put in is on the technical developments and the price of the tokens. As much as these two are key in growth and sustainability, human connection should also be a prime focus. The sociability aspect should be paramount to any cryptocurrency.
The unending interest of investors in XRP and its biggest holder, Ripple Inc. has been nothing but sensational. The relationship between Ripple Inc. and XRP has on several occasions been addressed in various news outlets and the executives themselves. The interest shown on the digital asset has translated to a mass of followers and sceptics on the social platform of Ripple Inc. and XRP.
The Social Index of XRP
Most of the emphasis is placed on the price activity of a coin and the technical developments on the blockchain. These two metrics tend to show the improvements on any cryptocurrency platform at length. However, social index (or social interactions) is just as important as it covers the marketing aspect that is so crucial to blooming of the young field of cryptocurrencies.
XRP (XRP) has on its part has had extensive media coverage since it finished 2017 as the highest gaining crypto with a 30,000% increase in price. This was followed by the reports of Chris Larsen and Brad Garlinghouse being the richest figures in crypto given the value of XRP held by the two. As much as the news bounced off as negative to most sceptics, as XRP seems to be a centralized powerhouse, the overall coverage on the coin helped the coin shine in dimmed lights.
According to CoinSocialStory.com, a website dedicated to measuring the overall growth of cryptocurrencies, XRP has a social index score (SIS) of 18.70. This sees the coin claim the fourth position in the top 50 coins/tokens, below Binance coin (BNB), Tron (TRX) and OmiseGo (OMG). The latter have an SIS of 90.18, 38.89 and 23.56 respectively. The score is created from the social interactions recorded on Twitter and Reddit. The two social sites represent the largest of cryptocurrency communities currently.
Number of followers: 878,812 (-0.01%)
Tweets and replies: 6,128 (+0.03%)
Subreddit followers: 189,530 (0.00%)
Impact of social interactions on XRP’s price
So how does the social status of XRP (XRP) affect the price of the currency? It does not affect price in the short term but does have an influence in the long term. Looking at Bitcoin’s social awareness score compared to its price in the past nine years of existence, a positive correlation can be drawn out. The increase in awareness (mostly measured by mentions and google searches) spiked in late last year as the prices reached all-time highs. This was also recorded on Ripple’s case as the social interactions soared by over 200% on Reddit and Twitter in January, the price also spiked to $0.25, an all-time high.