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This week, a stablecoin is leading Sentifi’s crypto sentiment rankings: BUSD (Binance USD).
BUSD catalyzes crypto sentiment
Not only is it extremely curious that a stablecoin pegged to the US dollar can achieve higher sentiment scores than all other cryptocurrencies, it is also very curious that its score over the past week alone has risen from 49 to 82.
Underpinning this dramatic and sustained growth was surely the 151% increase in the so-called “attention buzz”, which measures how much people are talking online about a given cryptocurrency, or like in this case a given token.
However, there is probably a simple explanation. Real cryptocurrencies have had a negative attention buzz over the past week, surely linked to the significant drop in prices.
In addition, in recent weeks, prices had risen to a peak on 9 November, so the attention buzz had certainly risen a lot.
In the last seven days, however, the drop in prices has triggered a sharp reduction in online attention towards cryptocurrencies, whereas it has obviously not had the same impact on stablecoins, whose value has remained stable.
This may explain the drop in attention towards cryptocurrencies, but not the increase in BUSD. Other stablecoins have not recorded similar increases in attention buzz.
The BUSD stablecoin
BUSD is now the third stablecoin in terms of market capitalization, with approximately 13 billion dollars. It is still a long way behind USDC ($38 billion) and, above all, USDT ($74 billion).
Indeed, at the beginning of November, it had a market capitalization of more than $14 billion, which then fell from 5 November.
It is possible that this increase is linked to some launches of new tokens, which can be purchased in BUSD on the Binance Smart Chain. Demand for BUSD increased so much that between November 20 and November 22, its price rose three times above $1.01, or 1% above its normal value of $1.
Other cryptocurrencies in terms of market sentiment
In second place by sentiment this week was Polygon (MATIC), while in third place was another newcomer, Synthetix (SNX).
In fourth place was one of the most historic cryptocurrencies, Neo, while in fifth place was Waves (WAVES).
It is possible that these four are basically the ones with the smallest drop in attention buzz, though for Polygon the drop was 17%. In recent weeks, there had been a lot of talk about this project, so it started from a higher level.