The unfolding FTX crisis has seen social engagement, social mentions, and social contributions reach all-time highs in the crypto market, according to social intelligence firm LunarCrush.

According to the report:

“The million people who talked about crypto resulted in 2.4 million total crypto mentions (an average of 1.8 million) and 6.9 billion interactions (an average of 4.6 billion) on social platforms. . This uptick in conversation correlates with volatile price action across a spectrum of cryptocurrencies.”

The liquidity crisis rocking FTX, one of the major crypto exchanges, has sent shockwaves through the market. For example, the crypto market capitalization fell below $900 billion for the first time since January 2021 when news of the FTX problems hit the airwaves, Blockchain.News reported.

The high social engagement illustrates that the FTX saga has people talking amid wild volatility activity across almost the entire crypto market, according to LunarCrush chief product officer Jon Farjo.

Farjo added:

“Since social media is the breaking news source for everything happening with FTX, we have seen a massive increase in conversations. As information is breaking at a rapid rate, it seems that everyone has a hot opinion on this. Those shots have created a lot of price movement, de-risking, and ultimately trust issues throughout the crypto market.”

Several crypto companies have collapsed, such as lenders Three Arrows Capital and Voyager. So it seems like it was a case of biting off more than they could chew. LunarCrush CEO Joe Vezzani noted:

“Conversations around FTX and crypto far exceed any other crypto-related event this year. This comes at a time when we saw Terra, Celsius, Three-arrows, and many others fail in 2022. For cryptocurrencies, this is no different than the banks failing in 2008, the only difference is that taxpayers are not required to pay the bill. . It is still a better system in development.”

With the Binance takeover deal reaching a dead end, it remains to be seen if FTX is destined for the bankruptcy route.

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