Despite numerous upgrades, both finished and planned, the interest in the cryptocurrency sector has felt the consequences of the bear market, leading to a significant downswing around the world, new research has shown.
Indeed, interest in cryptocurrencies around the world has dropped by 16% in the last year, whereas in the United States, it has lost as much as 26%, according to a study by CoinJournal shared with Finbold on August 4.
Meanwhile, the Netherlands has recorded the most significant drop in search volume, dropping 37% since 2021, followed by Ireland at 30%, with the United States reaching the third position regardless of accounting for a large part of market volume.
What is behind the drop in crypto interest?
Commenting on the loss of interest in digital assets, CoinJournal’s crypto data analyst Dan Ashmore explained that:
“It makes sense that interest drops amid the downturn, especially when considering the hysteria of last year. Human nature dictates that we all want to get involved when things are going well.”
According to him, the previous increase in interest was sparked by “rising prices, viral screenshots of investment returns, mainstream media headlines of positive cryptocurrency news.”
However, “with the tap of easy money now turned off, any marginal customer has fallen away, uninterested in prices going the other way.”
Some countries record spike in search volume
That said, interest in cryptos in some countries recorded major increases over the last year, including in Morocco, where it grew by 61%, followed by Kenya, Sri Lanka, Nigeria, and Colombia.
The Central African Republic (CAR) was literally “off the charts” in this study, as its crypto search interest increased a whopping 592%, in part due to the country following the example of El Salvador and adopting Bitcoin (BTC) as legal tender in April.
And while Ashmore admits that the worldwide scale of the decline compared to 2021 is “jarring”, he is still optimistic, stating that “there is no reason to believe that the trend here won’t reverse if the macro environment stabilizes and the uncertainty in the wider market somewhat dissipates.”
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