What is the DataLight’s Hype Index?
Asset analysis consists of two major components – technical and fundamental analysis.
While technical analysis is focused on the price graph, fundamental analysis deals with the analysis of financial data and other statistics for a company.
Let’s concentrate on the fundamental analysis of assets. We’ll assume you’re a seasoned investor and that you have the necessary experience to conduct an analysis of an organisation’s financial reports.
Let’s say that you see a positive dynamic in a recent report and think you should increase your level of investment in this company.
Your investment will be successful if other investors also see this dynamic. How will you know whether everyone sees the same thing? One way is to look for positive news about the company. Let’s assume that this news exists. But how many investors will have read it?
It’s easy to track nowadays by analysing feedback on social media. For crypto investors, the main social media platforms are Twitter, Telegram, Reddit and a few other social networks.
We track social media mentions of crypto assets on these channels, calculate their reach, and analyse posts and comments in terms of their number and tonality in order to provide you with several indicators – Hype Index being one of them.
Hype Index is a measure of how popular a crypto asset is at the moment, and how much it is being discussed.
This index helps you to conduct price analysis. For example, soaring prices which are not accompanied by positive dynamics in Hype Index can make an investor cautious, but a fall in the Hype Index accompanied by a stable price might be a reason to fix profits/losses on an asset.