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Google Trends depict falling interest in Ethereum & NFTs but here’s the caveat
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| Last updated: July 6th, 2023
While not the most sophisticated of data tools, Google Trends is a way to roughly understand the level of interest that internet users worldwide have in a certain topic.
To that end, Google Trends data for the search terms “Ethereum” and “NFT” revealed an unmistakable end result. This was a fall in search interest since close to the beginning of the year.
Source: Google Trends
Does this drop-off have any effect on price or market movements? Well, at press time, Ether [ETH] was trading hands at $2,854.57, after falling by 3.17% in a day and dipping by 2.14% in a week.
On the other hand, when interest in Ethereum was higher, around 25 January, ETH was only trading at about $2,400. For this reason, more searches may not mean higher prices or vice versa.
What about NFTs, however? According to CryptoSlam, NFT sales volume on Ethereum fell by 15.90% in the last 24 hours. However, sales were up by 53.25% in the last 30 days. So again, a fall in search interest is not strictly equal to a loss in price or volume.
Don’t “Weight” up for me
Data from Santiment revealed that Ethereum investors are far from drowning in tears, despite the fall in price. In fact, weighted sentiment for ETH showed that investors were coming down from euphoric spikes, the likes of which were last seen before the December 2021 crashes. This could have helped trigger the latest fall in prices. Even so, weighted sentiment was 0.942 at press time, suggesting that further falls could be on the cards.
Source: Santiment
That being said, ETH supply on exchanges was still falling at press time, indicating that investors aren’t likely to be drawn into a drastic sell-off en masse. A continued fall in ETH on exchanges or ETH being staked could help raise the price of the asset and initiate a bull run, with time.
Source: Santiment
A load of ‘whataboutery’
So Ethereum might be able to hold its own even in a turbulent market, but what about the still booming NFT industry? Will it survive a red market? While there are reasons to be concerned, one positive sign is that the Opensea [Ethereum] monthly volume has already surpassed the levels it hit last month.
Source: Dune Analytics
Adding to that, there has been a strong recovery in daily trading volume since mid-April. If this goes on, it could help both the NFT industry – and the Ethereum ecosystem.
Source: Santiment
