It seems that cryptocurrencies have been swimming in troubled waters since the beginning of 2018. Among the tools used to analyze how well cryptocurrencies are doing, Google Trends is one of the most prominent. And, according to their analysis, searches related to cryptocurrencies such as Bitcoin and Ethereum have dropped by about 75%.
A Drop in Search Volume Linked to A Drop in Value
Since December of 2017 Bitcoin has been showing signs of weakness. The data, collected by Google Trends, shows that, after spiking in December, searches related to Bitcoin have dropped back down to where they were in October and November of last year.
Another notable fact is that the countries that are interested in Bitcoin have changed since the beginning of the year. As of October of 2017, South Africa had been at the top of the list of countries who were showing the most interest in cryptocurrency, followed by Ghana (8th), Nigeria (15th), Morocco and Rwanda. Today, it is Ghana, Rwanda and Egypt that are showing the most interest from Africa. Also, it should be noted that countries with developing economies are the ones who make up the bulk of countries showing interest in Bitcoin.
However, the rise in search volume from developing countries has not translated into a rise in the price of Bitcoin. This can be seen by the fact that transaction volume has dropped by 150,000 per day on average, which is about where it was two years ago.
As for Ethereum, it seems to be on the same slippery slope as Bitcoin and only since the beginning of 2018 have things started to look better. However, since cryptocurrency markets have now been shaken by another crisis, searches related to Ethereum have dropped.
Google Trends has place France in 12th place and the United States as 40th, which seems to be where they were back in November 2017. The value of a single unit of Ether has also followed this same tendency and according to the analysis, the correlation between the decline in search volume and the drop in value is one to one.
It’s Not Only Google Searches That Are Dropping
There has also been a decline over the last 2 or 3 months in other activities related to cryptocurrency such as user comments about Bitcoin and Ethereum. The transaction volume of Ethereum has also dropped to 730,000 as of February 24th, which is the same volume as in December 2017. However, these trends are quite understandable when we consider how exuberant 2017 was for cryptocurrencies and the recent decline in interest might just be the calm the after the storm.
For example, Ether could close the month at the same value as it started out at; somewhere between $800 and $850. And, this would show that this value is stable, no longer volatile and could be a show of its reserved value.