Google searches for cryptocurrency related keywords have sunk to a 29-month low in the backdrop of the ongoing fluctuations impacting the sector. Data by Google Analytics show that between the last week of December 2020 and the present, crypto-related web searched peaked in 2021, before slipping down. Back-to-back downfalls of promising crypto projects, multiple hack attacks, and global regulatory uncertainty around crypto could be counted among top reasons why the intrigue around this up-and-coming class of digital assets may have dwindled so drastically.
Bitcoin and Ether — the two most valued and popular cryptocurrencies — have seemingly lost a bit of their standing among crypto enthusiasts in recent months, said a CryptoPotato report citing Google data.
It is noteworthy, that both BTC and ETH were trading around their all-time highs of $68,000 (roughly Rs. 56 lakh) and $4,700 (roughly Rs. 3.8 lakh), respectively, in November 2021 — which explains why these key words were recording more searches on Google at the time. Presently, however, both BTC and ETH are trading at a price point far below their last attained all-time highs. As of Wednesday, June 7, Bitcoin is trading at $25,600 (roughly Rs. 21 lakh) whereas Ether is priced $1,876 (roughly Rs. 1.54 lakh).
Along with BTC and ETH, majority cryptocurrencies have been trading on the low side for some time now, hampering investor interest in the overall sector.
“Crypto” search trends are at the lowest point they have been since December 2020.
This also corresponds to exchange volumes which were at 32 month lows this past May.
Apathy? pic.twitter.com/UPOmhNGeDN
— Coin Bureau (@coinbureau) June 4, 2023
Retail investors as well as institutional investors, both seem to have lost interest in the crypto sector especially after projects like FTX and Terra collapsed last year due to internal mismanagements, leading to losses worth billions in 2022.
Additionally, 2022 emerged as the worst on record year for cryptocurrency heists, with hackers stealing as much as $3.8 billion (nearly Rs. 31,100 crore) with 32 separate attacks recorded in October alone, a Chainalysis report had claimed in February this year. Putting their funds at risk of being stolen could be playing a major role in pushing investors away from the space for the time being.
The Crypto Fear and Greed index, meanwhile, has remained “neutral” around the score of 53 for over a month now, indicating that the activity in the sector is majorly unchanged for at least 30 days.
It is, however, noteworthy, that Google searches around Decentralised Finance and DeFi reportedly spiked this year. The back-to-back collapse of three traditional banks in the US could have sparked people’s interest in understanding what DeFi has to offer.
While Nigeria has contributed to the maximum numbers of crypto-related searches on Google this year, South American nations show little or no interest in exploring crypto via the Web.
The searches around memecoins reportedly spiked on Google after Pepe Coin made a splash in the market earlier this year.
Presently, the valuation of the crypto sector stands at $1.12 trillion (roughly Rs. 92,82,759 crore), as per CoinMarketCap.
Nations around the world are working individually or in groups to formulate apt rules to govern the crypto space and make it financially stable for investors to dabble in. The European Union, for instance, has approved a detailed set of crypto rules named MiCA, that would uniformly be enforced across the EU for all crypto players and investors to adhere to.
India, on the other hand, is working with members countries of the G20 to bring crypto rules that could be applied to monitor the space internationally.
