Declining Retail Interest in Crypto: LunarCrush CEO

According to Joe Vezzani, CEO of LunarCrush, retail investors are not yet buying into the hype of increasing Bitcoin and digital asset prices. He stated that compared to the last major bull run, social interactions and retail interest are still relatively low. In the past six months, there were spikes in social media posts mentioning Bitcoin in January and March. The January spike may be due to the excitement around spot Bitcoin ETFs being approved by the SEC. In March, there was another surge as Bitcoin reached a new all-time high, but the number of posts remained steady even though the price continued to rise.

Mentions of Ethereum remained steady in the last six months, but there has been a downward trend since the beginning of March. Solana experienced bursts of activity in the past six months, possibly due to the popularity of memecoins on the network. Social media posts mentioning Solana declined in early April. Vezzani mentioned that if spam and bots were removed from the equation, the crypto space might be experiencing a decline in social media activity.

Vezzani doesn’t believe that upcoming major events like the Bitcoin halving will lead to a substantial increase in retail engagement. He argues that the halving is seen more as an insider event and introducing concepts like this can overwhelm newcomers and reduce their interest in the crypto discourse.

Vezzani emphasized the importance of looking at social engagement data because the crypto market is fragmented with new coins and exchanges constantly emerging. He believes that traders who leverage social media data have an advantage over the rest of the market by having access to additional critical metrics that drive market movements.

Vezzani also suggested that social media information can help protect traders from potential downsides or identify promising coins that can maintain a strong social media presence in the long term.