As the markets decline, we see values stoop to new lows. This is an organic part of cryptocurrency. The saying goes… **** happens, and indeed, this is the case for crypto. When this happens however, we need to consider the wider effect it has on the rest of the crypto-community. Of course, as values drop, so does commercial interest. As interest drops, less people want to engage in crypto-related activity. According to a new report by Quartz, Coinbase have really felt the brunt of this fall.
According to this report, Coinbase has now recorded new lows for downloads of the Coinbase app, lows that are bringing it down to the lowest ranking finance app in the United States. This alone is evidence that less and less people have an interest in cryptocurrencies.
This chart shows how downloads of Coinbase and user counts have declined since both figures peaked during the cryptocurrency boom at the start of 2018. From this alone we can see a clear correlation between market values rising and interest peaking, plus a vice versa effect, as prices fall, so does interest in apps like Coinbase (the same effect is visible on this chart, during the April bull run too).
According to Quartz:
“Coinbase co-founder and CEO Brian Armstrong said on Twitter that the company isn’t worried about short-term prices and negative headlines, and that downturns help clear out the people who are in the market for the the wrong reasons. And while some exchanges have balked at closer scrutiny from regulators, sometimes fleeing to jurisdictions with less oversight, Coinbase positions itself as being closely aligned with government watchdogs. The key question is whether bitcoin will ever be more than just a vehicle for speculation.”
See the full article for yourself, here.
It seems that Coinbase aren’t too worried about this. From the evidence we can guess that when interest in cryptocurrency begins to rise again, we will see interest in apps like Coinbase rise again. Therefore, Coinbase et al really don’t have too much to worry about.
Although, if the markets continue to fall, does this mean apps like Coinbase will cease to exist altogether?