Sentiment Analysis: Understanding Crypto Market Emotions

Market sentiment plays a crucial role in crypto price movements and adoption trends. The emotional tone of conversations around specific assets or the broader market can provide valuable leading indicators for traders and analysts. The Sentiment API gives you programmatic access to sentiment data derived from social conversations across the crypto ecosystem.

Methodology

Methodology: Posts, replies, and retweets from high-mindshare users are routinely captured. All crypto-relevant assets, projects, persons, and organizations are extracted from these posts. Based on a supervised learning model, the sentiment score of each post is determined.

Key Metrics

Our sentiment analysis produces several key metrics:
  • sentimentScore: Measures the difference between recent (24h) and baseline (20d) sentiment. Ranges from 0 (extremely negative) to 100 (extremely positive), highlighting short-term sentiment shifts against a longer-term baseline.
  • sentimentMomentumScore: The change in sentiment score from the previous day (e.g., a shift from 45 to 65 yields a momentum score of +20).
  • positivePostPercent: Percentage of tweets with positive sentiment over the last 7 days.
  • negativePostPercent: Percentage of tweets with negative sentiment over the last 7 days.
  • neutralPostPercent: Percentage of tweets with neutral sentiment over the last 7 days.
  • tweetVolume: Total number of tweets about a particular asset over the last 7 days.

Available Endpoints

The Sentiment API provides several endpoints to track sentiment:
  • List Asset Sentiments - Retrieve sentiment scores for a comprehensive list of tracked crypto assets
  • Asset Sentiment Details - Get detailed sentiment information about a specific asset
  • Sentiment Time Series - Track how sentiment around an asset has changed over time

What You Can Build

Sentiment Monitoring

The Sentiment API allows you to analyze the emotional tone of social media posts about crypto assets. With this powerful capability, you can:
  • Track shifts in market sentiment toward specific assets in real-time
  • Identify sentiment divergences that might indicate market turning points
  • Compare sentiment across different assets or sectors

Sentiment-Based Signals

By incorporating sentiment data into your analysis, you can:
  • Detect extreme sentiment conditions that may signal potential market reversals
  • Identify assets with improving sentiment despite stagnant prices
  • Track sentiment recovery after negative events or market corrections

Correlation Analysis

The time series data enables you to:
  • Measure how sentiment changes correlate with price movements
  • Identify which assets show the strongest relationship between sentiment and price
  • Determine optimal timeframes for sentiment-based trading strategies

Integration Examples

The Sentiment API can be integrated into various applications:
  • Trading platforms that incorporate sentiment indicators alongside technical analysis
  • Market intelligence dashboards that track sentiment across different asset categories
  • Risk management tools that alert users to significant sentiment shifts
  • Research platforms that correlate sentiment with other on-chain and market metrics