On- and off-chain metrics within the cryptocurrency market remain subdued, analysts at Citi Securities said in a recent report. The analysis points to several key factors that indicate a cooling interest in the sector, with diminished search trends, declining network engagement, and low futures funding rates as central themes.
Search interest, a proxy for retail engagement, has dropped significantly. After a brief resurgence, Google search volumes for both and Ethereum have retreated to near-recent lows.
Network activity, a key measure of the underlying blockchain utilization, has also been declining. Ethereum, despite seeing a peak in activity following the recent Dencun upgrade, has experienced a sharp drop in transaction fees and active addresses. Despite this, unique daily users on the Ethereum network are up around 34% across layer-1 and layer-2 chains compared to the 2023 averages.
Meanwhile, the Bitcoin network bottomed in June, “though it still sits…
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