On Google Trends, the keyword "blockchain" has outdated "encryption" in popularity in recent months, suggesting that the demand for the asset class has declined relative to the underlying technology.
Over the past eleven months, since January, the cryptocurrency market has fallen by 75% in the valuation from $ 800 billion to $ 200 billion, as the major cryptocurrencies like Bitcoin and Ethereum have lost almost 70% of their value .
For over three months since August, the cryptocurrency market has shown a low annual turnover and volume, leading analysts to assume that the market fund is close. Technical analyst Hsaka said:
"To be honest, with the volume and volatility that are running out, I would not be surprised to see BTC keep this range for another month (and maybe even up to EOY) .It would be the way of maximum pain, the bears they do not get their quick selloff at 4.8k, the bulls upset for not being able to break the 6.8k ".
That Blockchain assumes cryptographic means
As seen in the struggles of IBM and Microsoft technology giants to convince large conglomerates and supply chain operators to adopt private blockchain networks, the blockchain has not demonstrated its potential in the last three years.
Banks, financial institutions and technology companies have allocated billions of dollars annually to develop enterprise-grade blockchain networks with a focus on scalability versus security. However, the blockchain has not seen a mass generalized adoption.
Ripple Labs, considering the use of the Ripple network from the new mobile application of Banco Santander and 61 major banks in Japan, has shown some potentials of the current applicability of blockchain in traditional finance.
In general, however, companies have found it difficult to integrate the blockchain into existing infrastructures of large platforms.
Rolf Jansen, CEO of Hapag-Lloyd, a German transnational transport giant, said the conglomerates were skeptical about the adoption of private blockchain networks because the main purpose of a blockchain is to eliminate trust and networks private persons imply trust at a certain level.
"Technically the solution (by Maersk and IBM) could be a good platform, but it will require a governance that makes it a platform for the industry and not just a platform for Maersk and IBM, which is the weakness we are seeing in many of these initiatives, because every single project claims to offer a sector platform that they control themselves, this is self-contradictory. "
In contrast to the private blockchain industry, the cryptocurrency industry has seen many of the most positive developments in its 10-year history. Bakkt, sponsored by ICE / NYSE, has announced the launch of a Bitcoin futures market, while Goldman Sachs is preparing to cancel short-term cryptocurrency derivatives and major banks such as Morgan Stanley are currently testing systems linked to the cryptocurrency.
However, the trend of the term "cryptography" and "cryptocurrency" is in decline and has been detected by a keyword that represents a stagnant industry that struggles to find significant success in the year.
What can lead to recovery?
On October 10, talking to MarketWatch, the main market analyst at Think Markets U.K. Naeem Aslam said that the cryptocurrency market needs a great catalyst to drive a strong recovery to previous levels of resistance, Aslam said:
"Bitcoin needs a kind of blessing and only able to revitalize the event for the currency"
But, to date, eleven months in a bear market, it is clear that the demand for encryption by retailers has significantly decreased, as demonstrated by Google Trends and the low volume of the cryptocurrency currencies market.
Cover photo by Hans Veth on Unsplash
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