One of the main narratives of hope for cryptocurrency investors is that there will be a major shift in public perception that sparks a new wave of capital from retail and institutional traders.
A similar pattern is seen when looking at the search interest for the top smart contract platform Ethereum (ETH), which saw its peak interest occur during the second week of May 2021, and has been on the decline ever since. Search interest for Ethereum is currently at its lowest level since December 2020.
Based on this information, it could be time for crypto investors to reevaluate where the next major lift to the market will come from because it is clear that retail interest is tied in large part to big price movements.
Weak exchange volumes
Further evidence for the declining interest in cryptocurrencies can be found when looking at the total exchange trade volumes on major exchanges. According to data from Blockchain.com, this metric was at $165.8 billion on April 19, its lowest level since October 2020.
Growth in the decentralized finance (DeFi) sector and decentralized exchanges (DEXes) has likewise been on the decline, according to data from Dune Analytics.