A two-month-long lull in cryptocurrency optimism has seen online search interest for “crypto” and other common cryptocurrency terms stumble down to late 2020 levels. According to data from Google Trends, the term “crypto” currently has a score of 17, which is well off its reference point of 100 in May 2021. BTC and Ethereum have followed a similar downward trajectory. However, search interest for these terms has been in a relatively consistent decline since May 2022, about a month after much of the Terra Luna ecosystem collapsed. A small spike in interest came in early November when the FTX crypto exchange collapsed.
The fall in interest comes as Bitcoin has held steady around $28,000 for 10 weeks now — something which Galaxy Digital CEO Mike Novogratz recently described as “lackadaisical,” due to a lack of “institutional excitement right now.” Guy Turner, commonly known as “Coin Bureau Guy,” suggested in a June 4 Twitter post that the fall in interest also coincides with lower trading volumes on exchanges, which he claims to have reached a 32-month low last month.
Alternative’s Crypto Fear & Greed Index tells a similar story too, with market sentiment hovering around its current score of 53 — in the “Neutral” zone — for nearly a month now.
Interest hasn’t dipped in every domain of crypto, though. Search volumes for “decentralized finance” and “defi” have managed to increase in 2023, while searches for “memecoin” reached a peak in early May.
Nigeria currently holds the highest score for most crypto-related searches, while many of the lowest scores come from South American countries. On the other hand, search interest for artificial intelligence continues to skyrocket, which many believe is the latest “tech fad.”
Given the recent decline in search interest for crypto-related terms, investors might be wondering whether this signals a broader decline in the popularity of cryptocurrencies as an investment vehicle. Nonetheless, some analysts argue that this is simply market fluctuations and temporary setbacks, while the overall adoption of digital assets continues to progress.
Indeed, despite the fall in search interest, the broader trend of growing use and mainstream acceptance of cryptocurrencies has not reversed. For instance, the growing popularity of decentralized finance, as well as increased attention from institutional investors and high-profile public figures, indicates that the interest in digital currencies is far from waning.
In conclusion, while search trends suggest a decrease in general curiosity about cryptocurrencies, this doesn’t necessarily equate to a decline in adoption or wider interest. Instead, it may be indicative of the natural ebb and flow of market sentiment, which is influenced by factors such as temporary setbacks, market conditions, and geopolitical context. Consequently, it is crucial for both investors and enthusiasts to consider these patterns within the broader context of cryptocurrency adoption and use.