In the fast-paced cryptocurrency space, understanding the narrative is one of the keys to profiting. When a project starts to be discussed a lot, its price may rise rapidly; and when the topic becomes a hot topic among the public, its price may be close to its peak.
Analyzing data from Farcaster, an emerging decentralized social platform in the Web3 space, can help us better understand which projects and narratives are gaining traction and hopefully find the next market hotspot.
Well-known KOL Dan Zong (@CXO_no) commented at the end of April that the narrative of Farcaster/Base is not limited to memecoin, but also includes creator economy, AI, social and game play based on the Farcaster protocol, with a wide range of possibilities. He further predicted this week that Farcaster/Base will be more imaginative, waiting for a phenomenal "first project (the first project in the ecosystem that surprises you)".
Introduction to Data Analysis Tools
Next, let me guide you through the Dune data dashboard designed by on-chain data analysts Crypto Koryo and ilemi. This is an ideal entry tool for Farcaster novices, and it can also help investors quickly grasp the hot topics on Farcaster and discover potential investment opportunities.
Keyword Analysis
On the Farcaster Explorer data panel of ilemi, the first section is keyword analysis, which plays a similar role to Google
Trends function: Users can search for keywords and view the changes in the popularity of their mentions, and can also view Farcaster's real-time popular keywords to grasp hot topics in real time.
For example, the data shows that the hottest topic on Farcaster is $degen, which has been mentioned by more than 20,000 users and appeared in more than 800,000 tweets. Users can also filter by entering a specific channel through the "words channel filter" to find the most popular keywords in that channel.
Narrative Analysis
To track the trend of crypto narratives, you can use Crypto Koryo's Narratives Social Trends data panel for analysis. This panel uses Farcaster's social data to conduct a detailed analysis of L1, L2, Runes, LRT and AI narratives, and plans to include more crypto narratives in the future.
For example, on May 1st, Farcaster users’ discussion of these five narratives was less enthusiastic than in the past, and the L2 narrative accounted for 77.6%, making it the hottest among the five narratives. Then, we can further analyze the L2 narrative and find out that in the past week, Line, MATIC, and Blast's discussion popularity increased the most, while Base, Starknet, and METIS's popularity dropped most significantly.
User Analysis
1. User classification
The Farcaster Explorer dashboard organizes Farcaster users by number of followers, number of tweets, and engagement (how many clicks a tweet receives).
The user quality of Farcaster is quickly understood by users (likes, replies, retweets, etc.). For example, in the past 14 days, about 16,000 users were high-quality users (active level and above).
2. All users: a list of the most active users
Through the data panel, you can view the influencers on Farcaster sorted by the number of followers, which helps newcomers quickly identify the users they should follow first. For example, Farcaster co-founder dwr.eth is the user with the highest number of followers and is most active in the warpcast, farcaster, and product channels.
3. Screening users
Users can also filter users based on specific criteria for deeper analysis. For example, view users in all channels who have been registered for more than 30 days, sorted by number of followers in descending order, or view users who are followed by a specific user such as @jessepollak (Base protocol leader) and have been registered for less than 7 days, sorted by engagement in descending order.
Channel Analysis
1. Channel rating
Channels on Farcaster are similar to subreddits on Reddit, and ilemi has classified them based on the number of tweets, engagement, number of users, and user levels of the channel. For example, stadium is the highest quality channel, which must have more than 250 tweets, an engagement score of more than 100,000 points, and more than 10 high-level users.
2. All channels: a list of the most active channels
The dashboard lets you view the most active channels on Farcaster, sorted by engagement score, helping you quickly identify the channels you should focus on first.
3. Filter channels
Users can also filter and analyze channels. For example, they can view popular channels that Vitalik has joined, or view which channels have been online for less than 7 days but have the most high-level users who actively post, so as to join these channels as early as possible and develop relationships with other users.
Summarize
The above Farcaster social data analysis can help you track social activities and measure market sentiment. This will provide emotional clues to market participants and help discover new catalysts, narratives, and projects that are receiving more attention. Hopefully, this will provide you with a competitive advantage in the rapidly changing crypto market.
