Ethereum has risen by 10x since its brief bottom last December and has just marked a milestone in getting all green lights for the new Proof of Stake blockchain.
The general public however seems to be less interested than it was during summer amid the rise of decentralized finance (defi), according to Google searches.
Worldwide (pictured above), interest in ethereum is at 22 out of the 100 briefly reached in December 2017.
In the United States it is slightly better at 30 out of 100, making that its highest since February 2018.
Still, as eth now watches the imminent launch of ethereum 2.0 on December first, one might have expected a lot more curiosity.
Bitcoin is fairing worse. There, it’s at 17 out of its 100 even as it nears all time high.
Interestingly, the same happened the last cycle with bitcoin searches in 2016, when it was about to take the then all time high, being far lower than when it first set it in December 2013.
Meaning this lack of interest somewhat paradoxically is good news and the explanation for that is probably the halvening.
This generation and our society just can’t quite comprehend the effects of new monetary supply on the economy or on the value of money, but bitcoin is laying it somewhat bare because it has risen so significantly despite arguably demand not changing as measured by this proxy of Google searches.
It is therefore rising because supply has changed, and according to demand and supply, if demand remains the same but supply falls, then prices rise.
Here, new supply has fallen by a significant 50%. Thus bitcoin does not need new money. It can instead rise with just the demand that it had at the very bottom because the supply has fallen so considerably.
As bitcoin remains by far the biggest crypto asset with a market cap of $360 billion, its behavior is being reflected on eth which too has risen even tho demand is far below the peak.
In eth however demand has risen more than in bitcoin, and it’s performance against bitcoin is a -50% because eth was at the all time high of $1420 when bitcoin was at the current price of $19,000.
So indicating again the effects of changes in new supply with bitcoin’s reduced inflation clearly reflecting on its relative value.
The question is of course whether an appreciation of this dynamic creates front-running which may well lead to a bubble of sort furnished with a sell-side liquidity crisis as people hold out selling in anticipation of further price increases.
You’d think so, because why not. But for now no one knows and for now it appears according to these google searches that few know bitcoin or eth is rising at all.