Interest in cryptocurrencies has dropped significantly over the years. What does this mean for investors and for the market itself?
The popularity of crypto has taken a dive
The number of tweets related to cryptocurrencies and the number of members on Telegram groups has decreased significantly since 2018, but there are signs that social media is starting to turn around.
Joshua Frank, working in the analytical startup for the financial management of “The Tie”, informed us that almost all cryptocurrencies have seen a reduction in the number of related tweets from January 2018 to this day.
“In January 2018, the average 30-day volume of BTC tweets reached just over 80,500 tweets per day. It has dropped by as much as 66% since then”.
Despite everything, Frank emphasizes that the first quarter of this year was positive in terms of interest to cryptocurrency topics. Perhaps this was due to the upcoming “halving”.
A popular cryptocurrency trader known on Twitter under the nick @Aztec_btc published information on April 15th regarding the decline in the popularity of telegram groups on crypto topics. The decreases range from 25% to even 75% in the worst cases
The impact of crypto popularity on their value
Bitcoin’s price has surged by 10% today and is valued at $7,000, just like in 2018, with a comparable number of tweets. As it turns out, Ethereum (ETH) and Ripple (XRP) are worth much less than they were 2 years ago, where interest in these cryptocurrencies has dropped significantly since on such sites as Twitter or Telegram.
Despite the apparent correlation between cryptocurrency prices and online exposure, Frank does not believe that the drop in exposure & engagement suggests the decreasing in value. If the online engagement has any correlation with the market price, Bitcoin (BTC) may be looking at a more favourable second quarter, says Joshua.
Statistics show how recently the popularity of crypto has fallen in public space. The question comes to mind – is the decline in the popularity of cryptocurrencies a permanent trend and will Q2 be good for BTC?