Did Cryptocurrencies lose Popularity?

By Lucasgaio | Cryptoscience | 14 Mar 2022


Recently the world of cryptocurrencies seems to have lost the interest it enjoyed from the general public. I am referring in particular to the significant drop that has taken place following the recent all-time-highs in the price of Bitcoin and altcoins. So I wondered why this happened and what consequences it can have on cryptocurrencies in general. But let's start from the beginning and from the analysis of the present.

 

Google Trends

Google Trends records the number of searches on the Google search engine and for this reason it reflects very well the popularity and interest of people in a particular asset or market segment. An increase in the number of searches indicates growing interest, which may reflect a rise in prices or an expansion of the search term's user base. A simple glance at the graph shows that around the world there was a peak of Google searches in correspondence of May 2021, when there was a marked correction in the price and a lot of fear spread among investors. Following that surge, however, there have been no more significant increases and this is a sign of disinterest.

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Total Marketcap

The Total Marketcap represents the amount of capital invested in cryptocurrencies and is expressed in dollars. If you plot an average on the volumes of the last year (in blue on the chart) you can see very clearly how they flattened out after the month of May 2021. At the moment the chart of the Marketcap (Tradingview) marks a value of 1.7 T, which is almost half compared to the value of 3T touched in November 2021. Despite this, if one observes the structure from a macroscopic point of view, one cannot but keep in mind that a series of Higher-Lows and Higher- Consecutive highs.

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Bitcoin

Analyzing the BTC/USD chart (Tradingview), we see that there is a certain countertrend with respect to what has been said above. Here too I plotted an average on the volumes (in blue) as indices of the daily traded. If you compare the current value with that at the beginning of 2021 there is no comparison, but if you take into account the last part of 2021 to date, you can see an interesting thing. I am referring in particular to a succession of consecutive Higher-Lows and Higher-Highs structures, which indicate a constant and significant increase in trading volumes.

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NFT and Metaverse

Finally, non-fungible tokens (NFTs) and the various metaverses that have developed over the past few years have seen a spike in popularity towards the end of 2021, followed by a decline that continues to this day. This was reflected above all in the disproportionate increase in the gas fees of Ethereum, the main blockchain on which these two products were developed. Today, in fact, the fees paid for a simple operation on this network have dropped considerably, returning to the levels of 2020. Despite the recent decline in popularity, the NFT industry is showing signs of consolidation, indicating that even if the euphoria regarding these assets diminishes, there is already an established market that will continue to operate.

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Final remarks

The analyzes we have conducted show a decline in generalized interest both on the trading volumes of cryptocurrencies in general and on related products such as NFT and metaverse. Bitcoin, on the other hand, seems to go against the trend, highlighting an increase in its trading volume. Observing all this it is possible to advance a hypothesis that seems a gamble, but it would explain the data collected well: it seems as if the market had been pervaded by a generalized euphoria and is now operating a skimming. In particular, all those who entered with the sole speculative purpose and without informing themselves correctly are leaving this market. These people have evidently been drawn to fashion, the illusion of fast earnings and various influencers. The timid but steady rise in Bitcoin volumes, on the other hand, indicates that investors with serious intentions are piling up on the shoulders of those who sold at a loss, afraid of volatility.

 

 

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Lucasgaio
Lucasgaio

I am a pharmacist and a scientist.


Cryptoscience
Cryptoscience

A blog that speaks about science, a passion that has accompanied me since I was a child. My goal is to spread scientific culture all over the world, starting with cryptocurrencies.

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