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In the face of the sector’s continuous volatility, Google searches for cryptocurrency-related keywords have dropped to a 29-month low. According to Google Analytics data, from the last week of December 2020 to the present, cryptocurrency-related web searches peaked in 2021 before declining. Back-to-back failures of promising crypto projects, several cyber attempts, and worldwide regulatory uncertainty surrounding crypto may be among the primary reasons why interest in this emerging class of digital assets has waned so dramatically.
According to a CryptoPotato analysis citing Google statistics, Bitcoin and Ether, the two most valuable and popular cryptocurrencies, appear to have lost some of their lustre among crypto fans in recent months.
It is interesting to note that in November 2021, both BTC and ETH were trading at their all-time highs of $68,000 (about Rs. 56 lakh) and $4,700 (roughly Rs. 3.8 lakh), respectively — which explains why these key words were receiving more Google searches at the time. However, both BTC and ETH are currently trading at prices significantly below their previous all-time highs. As of Wednesday, June 7, Bitcoin is worth $25,600 (about Rs. 21 lakh), while Ether is at $1,876 (approximately Rs. 1.54 lakh).
Along with BTC and ETH, the bulk of cryptocurrencies have been trading at low levels for some time, reducing investor interest in the industry as a whole.
Retail and institutional investors appear to have lost interest in the crypto business, particularly after projects like FTX and Terra flopped last year owing to internal mismanagement, resulting in billions of dollars in losses in 2022.
Furthermore, 2022 was the worst year on record for cryptocurrency heists, with hackers stealing as much as $3.8 billion (almost Rs. 31,100 crore) in 32 separate operations in October alone, according to a Chainalysis research published in February this year. Putting their assets at danger of being stolen may be driving investors away from the space for the time being.
Meanwhile, the Crypto Fear and Greed index has been “neutral” around the score of 53 for almost a month, indicating that activity in the sector has been largely steady for at least 30 days.
It is worth noting, however, that Google searches for Decentralised Finance and DeFi apparently increased this year. The simultaneous failure of three traditional banks in the United States may have piqued people’s curiosity in learning more about what DeFi has to offer.
While Nigeria has provided the most crypto-related Google searches this year, South American countries have shown little or no interest in investigating crypto via the Web.
After Pepe Coin made a sensation in the market earlier this year, Google searches for memecoins apparently increased.
According to CoinMarketCap, the crypto sector is currently valued at $1.12 trillion (approximately Rs. 92,82,759 crore).
Countries all over the world are collaborating to develop appropriate rules to control the crypto area and make it financially stable for investors to dabble in. The European Union, for example, has established MiCA, a precise set of crypto laws that will be uniformly enforced across the EU and must be followed by all crypto participants and investors.
India, on the other side, is collaborating with G20 members to develop crypto standards that may be used to monitor the space globally.