Crypto community activity increases due to FTX

The FTX crisis has driven the number of posts, mentions and social contributions to historic levels in the cryptocurrency market, according to social intelligence firm LunarCrush.

As stated in the report:

The 1 million people talking about cryptocurrency resulted in a total of 2.4 million mentions (average 1.8 million) and 6.9 billion shares (average 4.6 billion) across social platforms.

This increase is related to the volatile price movement across a range of cryptocurrencies.

The liquidity crisis that rocked FTX, one of the leading cryptocurrency exchanges, sent shock waves into the market.

For example, the cryptocurrency market cap fell below $900 billion for the first time since January 2021 after news of FTX problems surfaced.

High social shares show that the FTX saga has people talking amid intense volatility across the cryptocurrency market, according to John Fargo, chief product officer at LunarCrush.

Fargo added:

With social media being the source of breaking news for everything that's happening with FTX, we've seen a huge uptick in conversations about the platform.

Since information is breaking down at such a rapid pace, it seems everyone has an interesting experience with this.

These processes have generated a lot of price action, removing risk, and ultimately confidence throughout the cryptocurrency market.

Several crypto companies have collapsed this year, such as lending firms Three Arrows Capital and Voyager.

Joe Visani, CEO of LunarCrush, noted:

Conversations about FTX and cryptocurrency are overshadowing any other crypto-related event this year.

This comes at a time when we've seen TERRA, CELSIUS, THREE-ARROWS, and many others fail in 2022.

For cryptocurrencies, this is no different from the bank failures of 2008.