I thought that hibernate is the most used Java ORM, by far. Is its usage declining? If so, where are people migrating to?

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You are looking at search trends, not usage trends
A lot of people know Hibernate sufficiently for their daily needs, so they don’t search as much for it. I expect this to be the dominant effect. Compare it for example with log4j which declines as well but certainly is still heavily used (and no the decline can’t be explained with slf4j) http://www.google.com/trends?q=log4j%2C+slf4j
As mentioned above a lot of people are talking (searching) JPA although they might use Hibernate as the implementation.
Some people realized that maybe the whole ORM thing is a bad idea … but that probably doesn’t show significantly in the search trends